KYC norms hindering financial penetration

CKYC is failing to have the desired impact due to lack of clear directions from the regulators, and lack of connectivity between the stakeholders and the repository

A doctor got a call from India’s largest nationalised bank. He was told his account would be blocked unless he came and completed a few pending KYC (know your customer) formalities. He rushed to the branch where he was subjected to a pitch for a premium credit card. Annoyed at being pulled out of his schedule on a false pretext, he demanded to know what KYC formalities were pending. He was informed that KYC formality was only an excuse for marketing the bank’s latest product to him. 

A story about mafia king pin Al Capone (1930s in the US) illustrates the