Congress general secretary Jairam Ramesh, in a post on social media platform X, alleged that thousands of tribal individuals in Jharkhand fail to access their own funds in bank accounts due to the need of KYC. He further urged the Reserve Bank of India to reconsider the process for these communities.
In his post, Ramesh cited survey reports from NREGA Sahayta Kendras in the relatively disadvantaged low income of Latehar and Lohardaga, and emphasized that tribal communities in India’s most poor areas are unable to access the money they have earned through MGNREGA or cash transfers from the Jharkhand government.
“Thoughtlessness and lack of policy coordination characterizes the non-biological PM and his Government’s policymaking,” he noted, referring to news reports.
He stated that though the direct benefits transfer initiative from the Dr. Manmohan Singh administration has been implemented by the Union government, it has failed to coordinate with the RBI to ensure broad banking access.
“The RBI’s imposition of rigid KYC norms, and the requirement to update them every few years, has left tens of thousands in India’s poorest districts unable to access their bank accounts,” he stated.
Former Union minister for rural development said that upon surveying 244 households in Latehar and Lohardaga, two Adivasi-majority districts of Jharkhand, the NREGA Sahayta Kendras concluded that 60 per cent of those surveyed had at least one frozen bank account, primarily due to minor discrepancies in names, addresses, or other information.
“They are unable to access their own money, including their wages from MGNREGA work, or the cash transfer from the Jharkhand Government’s Maiya Samman Yojana.”
The Congress leader added that the banking system in these areas has been crippled by these requirements as banks are overwhelmed by the regulatory burden placed on them.
“The RBI must immediately review the KYC process for these communities,” Ramesh demanded.