Parliament Winter Session| Congress MP Karti Chidambaram Challenges CIBIL & KYC Practices

In the ongoing Parliament Winter Session 2024, Congress MP Karti Chidambaram raised critical concerns regarding the Banking Laws (Amendment) Bill, 2024 during his speech in the Lok Sabha. He pointed out issues with the existing Know Your Customer (KYC) norms, calling it a form of harassment due to repetitive updates by banks, even when personal details remain unchanged. Chidambaram emphasized the lack of transparency in the process, especially with KYC outsourcing to third-party agencies. He also questioned the reliability and accountability of CIBIL scores, a private company managing credit histories for over 60 crore Indians. Chidambaram highlighted the absence of a proper redressal mechanism, which exacerbates the financial difficulties faced by a significant portion of the population.