MUMBAI: At a recent conference of private sector bank directors, RBI Deputy Governor Swaminathan J stressed the need for banks to comply with KYC guidelines with both “precision and empathy.”
He cautioned that non-compliance will result in regulatory action as RBI’s focus on strict adherence to rules grows.
Swaminathan also criticised the treatment of customer grievance mechanisms, particularly the Internal Ombudsman, as mere formalities. He called for this role to be a proactive, effective part of customer service, aimed at fair and swift issue resolution.
“Banks should build customer-centric governance at every level,” he urged, highlighting that customers from all backgrounds deserve transparent and respectful treatment. He also advised boards to look beyond traditional governance priorities, embracing digital transformation, ethical leadership, and customer-centric practices to foster trust and inclusivity.
With the RBI’s enhanced scrutiny, Swaminathan underscored that failing to uphold these standards could lead to supervisory intervention. “The Reserve Bank will not hesitate to act,” he said, reiterating RBI’s commitment to protecting public confidence in the banking system.
