KYC - The Mess

KYC a simple remember & easy to understand when it reaches to my ears 15 years back. The meaning I understood is KNOW YOUR CUSTOMER. I heard the same first time in bank. When I approach my bank for Housing loan the Advance officer says you must comply with KYC norms. However, the Branch Manager intervene and said I know Satish He is our Auditor some years back, a Chartered Accountant, help us and a daily visitor to our branch since stays nearby. As such, I know him, I certify and sign KYC compliant certificate. The Housing Loan was sanctioned, in 2 hours, I write to their RO saying my bank is faster than City Bank. This is my first encounter with this word KYC.

How this word turns to a Hox call for everybody in recent days, only the God knows. But my recent experiences with this word are very discouraging and may be the meaning of KYC is a not conveyed correctly, neither the executors know the correct meaning or though they understand, they want to move at a very safer corner, even if it means delay, or losing the business as well as Govt collections.

I have gone to a branch of top five nationalised bank near my house, to deposit a cheque in my PPF account which is in the branch of the same bank near my office. The Officer at the counter refused to accept due to non-KYC. I am surprised how PPF account is non-KYC. The Officer reply You have no KYC compliant account with our Branch; hence, we do not accept PPF Cheque though of the same bank. I explained having locker and SB account with the branch; however, I does not remember the complete number, she replies to it won't help. To my surprise, the branch manager, and their Complaint centre of the said also endorses this view. Though, being their con current auditor for 14 years, I am unable to deposit a PPF cheque as they said non-KYC person.

In another nationalised bank, I had Fixed Deposit as well as SB account. The bank say you cannot close the FD as non-KYC. I had submitted the KYC papers for FD account. After Three days, the officer informed you FD account is pre matured as asked but we are unable to deposit the same in your SB account as the same is non-KYC. I have again to submit the KYC papers. I don't know how can various account of same branch can be non-KYC and KYC must be submitted for each account. In the same bank they refused to transfer the balance in Current Account of a company to the other account of same company KYC compliant in the other bank. Despite being Branch Statutory Auditors of their branches for three years. I am still not known to them.

The broker asked KYC renewal if no transaction in the account for 12 months. Though, FATCA, etc are all with them. The BEST city bus service asks for KYC before issuing a pass of Rs.19/-.

I am surprised, why I am a nationalised KYC person at once for all so that, the KYC number will be handy for me and all of them, who have excuse of KYC. I also, request the RBI to clarify, give training, to all banks staff and display in each place the KYC means. I hope I have my voter's card, PAN card, Aadhar Card, Passport, Ration card, ICAI Membership Card, Driving Licence, Credit Card, Debit Card, and have KYC card.

The imagination of this KYC mess, has future look like as follows

An Auto Rickshaw Driver may refuse to ride me as I have not used his rickshaw for more than a year and call me a non-KYC rider and ask me to furnish the KYC details.

A vegetable vendor refused to sale Brinjal or Bhindi saying you have not purchased since last one year and a non-KYC user. Only after I submit my KYC details and a form signed then only, I was allowed to purchase and eat.

My mother does not allow me to visit on Diwali as I am non-KYC son, she says last year you did not come hence you are a dormant son. First submit the KYC details and signed form than only I am allowing you to visit her home.

Thank God I am a KYC complied person for my spouse as I never unapproachable to her for more than a year.

I request, authorities that by not to doing any type of activity for a period of 12 months does not make a person a non-KYC for rest of his life. The period should be at least 120 months and be revised urgently.

To my mind, eighter KYC is not understood properly, or is made an excuse of non-performing, a handy refusal. The authorities should issue BAR CODE to each person, which contain all his details since birth & save all of us from this KYC mess.