Jharkhand Achieves Top Position in India for Bank Account Re-KYC Completion
Ranchi, Jharkhand has emerged as the national leader in the re-know your customer (Re-KYC) process for bank accounts, achieving an impressive completion rate of approximately 51%. This significant milestone was announced by Prem Ranjan Prasad Singh, the Regional Director of the Reserve Bank of India (RBI), during the official launch of the Financial Literacy Week in the state on Monday.
Substantial Progress in Account Verification
Singh revealed that out of the total 54 lakh bank accounts in Jharkhand, the KYC verification has been successfully completed for nearly 28 lakh accounts so far. This represents a substantial achievement in enhancing banking security and compliance across the state.
Financial Literacy Week Focuses on Secure Banking
This year's Financial Literacy Week carries the theme 'KYC- Surakshit Banking Mein Pehla Kadam' (KYC - The First Step Towards Secure Banking). The comprehensive program aims to educate citizens on multiple critical banking aspects including:
- Understanding KYC requirements and procedures
- Utilizing the Central KYC (CKYC) registry system
- Maintaining proper account hygiene and discipline
- Recognizing the legal implications of allowing mule accounts for cyber frauds
Targeted Approach for Remaining Accounts
The RBI official emphasized that banks must continue their efforts to complete Re-KYC for a specific focus group comprising accounts that are currently operative or have become inoperative within the past year. This particular group contains approximately 10.42 lakh accounts that require comprehensive KYC coverage.
"While bankers in the state are conducting camps at block and district levels for Re-KYC, we should also follow examples from other states who are holding meetings at gram sabhas and facilitating local residents to complete their account KYC," Singh stated. He advocated for mass participation programs at the village level throughout Jharkhand during the literacy week.
Preventing Financial Fraud Through KYC
Singh stressed that proper KYC implementation serves as a crucial preventive measure against inoperative accounts being misused as mule accounts for cyber fraud activities. He also highlighted the importance of KYA (Know Your Accounts), which enables account holders to verify whether transactions from their accounts are genuine and authorized.
Educational Initiatives for Financial Awareness
Regarding financial literacy initiatives, Singh disclosed that the RBI has developed a special plan to conduct street plays in 125 schools this year to spread awareness among students. This builds upon previous successful programs including 'RBI Pathshala' conducted in 90 schools and 'Jadu Se Jagrukta' implemented in 101 schools over the past two years.
Addressing Challenges with Inoperative Accounts
Speaking to media representatives, Singh acknowledged that accounts which have remained inoperative for extended periods present particular challenges, as their holders are often difficult to trace. He noted that approximately two lakh accounts from the focused group have been registered with KYC so far, indicating ongoing progress.
Collaborative Banking Sector Participation
The inaugural session of Financial Literacy Week witnessed participation from several senior officers representing NABARD, State Bank of India, and various other banking institutions, demonstrating a collaborative approach toward enhancing financial literacy and banking security in Jharkhand.
