Wanting to rant about KYC Kaos (=chaos) is the reason I am returning to my blog.
Here is the text of my tweet to SBI and UIDAI
“I support #Aadhar Dear @ceo_uidai but @TheOfficialSBI is harrassing me by asking paper copies for KYC despite my bank ac and PAN being linked with Aadhaar. SBI even put a lien on my account with arb amount w/o formal notice. @FinMinIndia @PMOIndia . Two physical visits needed get lien lifted.”
SBI SM handle ‘replied’ with just an acknowledgement. Nothing from UIDAI.
I posted the above tweet on my Facebook page. I got inputs from knowledgeable people in banking explaining how KYC updating regularly is necessary as per ‘risk weightage’ and banking regulations and that the banks warn their customers before any action etc. I was also informed about how our banking practices are one of the most evolved in the world and a visit to branch every 2-3 years should not be a problem.
Since I am dealing with SBI, RBI, and UIDAI like world class institutions, I’d better be right and my peeve should not be just a crib. So I thought I will take the trouble of writing down what happened.
1. On March 17, 2018 at 19:06 I received a text message informing me that a hold of Rs xx ( amount significantly large) has been created in my savings account.
2. I didn’t receive a single text message or email from SBI about any pending action from my side KYC related or otherwise prior to the above sms. I have searched sms s and emails (including spam folder) to reconfirm this. I received many emails about not sharing OTP, exhorting me to download YONO app and all that. So my email and mobile no. with SBI have been correct.
3. I had linked my SBI account with AADHAR sometime back and I had submitted KYC documents to bank some time back so I didn’t even imagine this could be a KYC issue. I don’t have any loans. Nor I have given any standing payment instructions out of my savings account. And I have some good FD s with the same SBI branch – my home branch.
4. Perplexed, I called SBI 24×7 customer care number. Remember it was Saturday and it was 7 PM. After wading through IVR I managed to get the ear of ever so helpful and ever so sweet customer support executive only to be told that ‘Sorry Sir, this can be due to some loan or standing payment instruction related issue. I need to contact home branch.
5. Through my Sunday runs and beers and nap I kept wondering about this ‘lien’ on my account. I hate the word. SBI, the largest bank in India was telling me that I had ‘defaulted’ on something and that they had to take this drastic step against me on Saturday evening itself -so that I don’t flee and fly away like Mallya or Nirav.
6. On Monday morning (19th March) I tried calling my home branch because I wanted to know what exactly was the problem before visiting. No luck. Numbers saved on phone didn’t exist anymore. Google search and SBI web site branch page also retuned nonworking contact phone numbers.
7. My wife agreed to pay a visit. She was told that it was KYC ! You need to come with AADHAR Card and PAN Card original and self-attested photocopies.
8. My wife made another trip next day ( it is better that the same person meets the same person on the same issue, even if our systems are so evolved) and did the needful . Lien gone.
Now my questions
1. KYC is a must. Have it renewed regularly. But please can you be a bit predictable? How about a KYC calendar like Tax return calendar?
2. If Jan Dhan accounts with zero balance can be opened just with AADHAR, why is anything other than AADHAR linking is needed for Savings accounts with no loan and with some good FDs ? Don’t say that RBI says so. Logic? Risk weightage? Come on.
3. UIDAI says AADHAR is not a card. It is a number identifying a person using biometric data. How the hell SBI is asking for photocopies of AADHAR ? And SBI is not alone in this .
4. Why can’t SBI install kyc terminals in its branches? It has been for years that AADHAR and Jan Dhan have been existing. (Oh the pleasure of getting a Jio SIM by just showing your thumb to its eKYC terminal! )
5. I keep getting emails from Mutual Fund registrars that I should link my AADHAAR with my account or else … . This even after I have done it. So they add ‘ignore’ it if done already to play safe. You can’t filter out those who have done and remind only those who haven’t?
But our great SBI didn’t even send me a single email or sms. On a Saturday evening it woke up with a start to my ‘risk weightage’ and sprung into action to bring a lien down on me!
I also wonder: Mallya and Nirav must have complied fully with KYC. And that must the reason they could avoid any high risk weightage for years and years.