Loan closure to KYC norms: What RBI panel's suggestions mean for you

Proposals will improve banking for customers; make lenders be mindful of how they sell products

A Reserve Bank of India (RBI) committee has recommended guidelines to improve customer banking, responding to complaints over the years.

The committee’s recommendations include having auditors to check mis-selling of insurance products, completing KYC updates without service disruption and steps that will make it easier to release pledged assets.

"The Committee reviewed the complaints received under the RE’s Internal Grievance Redress (IGR) mechanism in the last three years and observed that the number of complaints has been range-bound in the region of around one crore complaints per annum," said a RBI circular on June 5, referring to banks as regulated