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An Reserve Bank of India (RBI)-appointed panel has recommended hosts of customer-centric initiatives for banks, including online settlement of claims by heirs of deceased account holders, flexibility for submission of life certificates by pensioners and a centralised KYC database. It has also suggested that the operations of accounts should not be stopped pending periodic Know Your Customer (KYC) updates.

The report of the Committee for Review of Customer Service Standards in RBI Regulated Entities (REs) has further recommended that there should be a time limit for the return of property documents to borrowers after the closure of the loan account, failing which a penalty should be imposed on the lender. In case of loss of property documents, the RE should not only be obligated to assist in obtaining certified registered copies of documents at their cost but also compensate the customer adequately, keeping in view the time taken to arrange the alternate copies of the documents.

It suggested the REs may adopt a nuanced approach for risk categorisation of the customers. For example, salary earners with inflows and outflows consistent with the customer's profile need not necessarily be categorised as high risk, even though they may be 'high net worth' individuals''. Similarly, students can also be categorised as low-risk. It said till the recommendation for a common complaint portal is put in place, the REs should have a system to enable the complainant to track the progress in the processing of the complaint. The pensioners, it said, should be able to submit Life Certificate (LC) at any branch of the bank in which they maintain their pension account. Moreover, they should be allowed to submit LC in any month of their choice to avoid the rush in a particular month, and subsequent LCs can be submitted in the same month at annual intervals.