KYC Crisis: Financial Death instead of Financial Inclusion https://www.youtube.com/watch?v=tDWlKgZDt68 Nov 7, 2024
The JAM Trinity (Jan-Dhan, Aadhaar, Mobile) was supposed to bring financial inclusion to India’s underserved communities. But for millions, Aadhaar-based verification has become a barrier rather than a bridge. This video, based on Sucheta Dalal’s article, uncovers the real struggles faced by rural Indians whose bank accounts are frozen due to mismatches and errors in their Aadhaar-linked information. Watch as we delve into the systemic issues causing financial exclusion, and the urgent need for reform in India's KYC and Aadhaar systems.
https://moneylife.in/article/jammed-how-aadhaarbased-inclusion-turned-into-financial-exclusion/75544.html While the ‘mission mode’ approach delivered large numbers, unfortunately, it prioritised targets over proper verification and banks opened many Jan-Dhan accounts without proper authentication of Aadhaar. A decade later, the re-verification of documents under the know-your-customer (KYC) process is wreaking havoc. These ‘low-risk’ accounts are being frozen or closed due to documentation issues, effectively inflicting 'financial death' on vulnerable account-holders.