KYC process experience with Canara Bank

I bank with Canara Bank from 6 years. I have some FD intrest earned annually which I use or reinvest. Recently I went to update my passbook with latest transaction to ensure I have enough funds before I write a check. ​ I had funds, bank officials said nothing. My passbook doesn't mention that my account is dormant. I didn't get any message from bank that my account is blocked until my cheque returned even when I had funds !! I had to pay 112 rs penalty for returned cheque. I went to canara bank. They said my KYC is pending so they blocked my account. I said, if you have such requirement why didn't you send any communication or even mention to me when I updated my passbook at the branch? They had no answer. I still co-operated and filled KYC form, provided my original PAN and Aadhar card. They took photo copy. I attested with signature. But I didn't have a passport photo at that time. Both my Aadhar and PAN has my adult age photo. Still they neither completed KYC nor allowed me to withdraw funds from my account !!! What is a bigger proof of my existence than myself in person? ​ Next day I went to another branch and started taking a video. I repeated the process for KYC and argued with bank employee. This time due to video on, they completed KYC asking OTP for Aadhar authentication. ​ The Aadhar OTP does not mention purpose of authentication. It could be for any purpose eg. KYC, taking loan, buying insurance products etc. ​ I said you must provide for what purpose you are asking an OTP. They said we mentioned purpose to Aadhar service but Aadhar service doesn't communicate it with customer!!! ​ I said how can I prove I shared OTP for KYC if I have no recording ? What if you say tomorrow that I took a loan or agreed to some terms ? ​ They had no answer. ​ Finally I withdrew my funds. ​ The RBI and Government needs to clarify why it needs KYC every now and then from every government agency? How many times they need to authenticate that I am myself? ​ How can they stop me from withdrawing my money from my account for invalid reasons? How can they block my account without informing me through any official communication channel? ​ RBI or finance minister never respond to any email. ​ They take no action against black money transactions in property deals. ​ They only troub white money earners who pay income tax from salary.