KYC (Know Your Customer) system for banks, certainly, is a tool to ensure transparency of financial transactions and prevent fraudulence. But it turns hostile when the customers are illiterate and unaware to fulfil the requirement on their own. The survey report of freezing the bank accounts of Adivasis in Jharkhand for not updating KYC, leading to denying them access to their own money is highly disheartening. The survey was conducted by NREGA Sahayata Kendras in Latehar and Lohardaga, the two Adivasi-majority districts in Jharkhand. Three villages of Manika Block in Latehar District (Dumbi, Kutmu and Uchvabal) and four villages of Bhandra and Senha Blocks in Lohardaga District (Booti, Dhanamunji, Kandra and Palmi) were surveyed by NREGA volunteers, who found that 60% of the 244 households had at least one frozen bank account, while in some all their accounts had been frozen. SDPI demands that the Reserve Bank of India intervene in the issue and resolve it at the earliest so as to assist the poor illiterate villagers to deal with the bank without hassles.
KYC Renewal Should Not be a Hurdle for the Villagers to Access the Bank Accounts
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