Raghuram Rajan rues many don't have bank accounts

"It is a shame that so many people in our country don't have access to banking," RBI governor Raghuram Rajan said, and wondered whether KYC norms could be rationalised without compromising security Rajan was speaking at the 10th convocation of the National Institute of Bank Management.

"Can we do this (KYC) better (without) compromising on security, while allowing ease of access? That is something we need to think about. We have to be innovative," he said.

Rajan went on to cite the case of one of his predecessors who faced hurdles opening a bank account after retirement.

According to media reports, D Subbarao faced problems opening a bank account in Hyderabad, after settling down there post-retirement, as he could not provide proof of residence.

Incidentally it was Subbarao who made KYC (know-your-customer) norms for opening bank accounts and other financial transactions stringent.

"We have to look at what regulations make sense and what regulations don't make sense. If a senior (ex-)RBI official cannot open a bank account, there is something wrong in the system. We have to figure out a better way," Rajan said.