“We Are Forced to Re-KYC Without Verification”: Uttar Pradesh Gramin Bank Staff Allege Fraudulent Pressure

A UPGB employee, requesting anonymity, told Kanal, “We are under pressure to adopt fraudulent methods for Re-KYC. The Regional Office has instructed us to complete Re-KYC even without verifying whether customers are alive, deceased, or have shifted residence — all just to meet targets.”

According to staff, branches are being pushed to complete 30–40 Re-KYC cases per day, regardless of whether customers visit the branch or submit the required documents.

As per RBI guidelines, Re-KYC must be completed strictly with one of six Officially Valid Documents (Passport, Driving Licence, Voter ID, NREGA Job Card, NPR letter, or Aadhaar) along with the bank’s Re-KYC form signed by the customer and certified by an officer. Employees allege these safeguards are being bypassed, with details simply filled into excel sheets to show numbers.

Wrath of Officials If Targets Missed

Staff further alleged that failing to meet daily targets invites strict reprimands. “If Office Assistants fall short, they are pulled up by Regional Office and Branch officials with threat to transfer,” one employee said, adding that the constant fear of humiliation has created a climate of stress and insecurity in branches.

RBI Norms Ignored

Such practices, staff warn, amount to a direct violation of RBI directives meant to ensure customer identity verification and prevent fraud. By bypassing document checks and customer signatures, the entire exercise risks creating fictitious records, undermining both compliance and public trust.

Employees also confirmed that these pressures are not isolated incidents but widespread across Uttar Pradesh Gramin Bank’s network normalising non-compliance culture and violating customer trust.

The pressure to “manufacture” Re-KYC data as alleged by bank staff not only endangers regulatory compliance but also exposes employees to accountability if irregularities are flagged during audits. It reflects a deeper malaise in rural banking, where staff shortages and target-driven directives are pushing employees into ethically questionable practices.