This means that, according to the central bank directive, the banks cannot make it mandatory for their customers to choose any ‘digital banking channel’ to avail services like debit cards.
“Banks shall not make it mandatory for the customer to opt for any digital banking channel to avail any other facility like debit cards,” said the RBI in the official statement.
Digital Banking Channel means the services provided by a bank to its customers through its website, mobile phones, or other digital channels via any electronic equipment, granting people access to carry out transactions.
The RBI also mentioned that banks will have to comply with the guidelines on customer protection, including limiting liability in fraud protection, in order to better regulate digital banking services.
“Banks shall comply with the guidelines on customer protection including limiting of liability in unauthorised electronic banking transactions,” they said.
Here are key takeaways from RBI’s new draft
1. Net worth: In the new draft, RBI directed that an individual with more than ₹50 crore in net worth must ask for the bank’s prior approval to access the digital transactional banking facility due to the ‘minimum regulatory requirement.’
“Net worth as per minimum regulatory requirement or ₹50 crore, whichever is higher, as on 31 March of the immediately preceding financial year,” said RBI in the draft.
2. Customer consent: The new directive also mandates that banks explicitly ask for customer consent before providing any digital banking service, the data for which will be recorded.
“Banks shall obtain explicit consent from the customer for providing digital banking services which may be duly recorded/documented. It shall also be clearly indicated that SMS/email alerts will be sent to the mobile number/email of the customer registered with the bank for operations, both financial and non-financial, in their account(s),” said RBI.
3. Clear terms & conditions: The central bank also directed that the banks will have to clearly outline the terms and conditions in a “clear and simple” language in English, Hindi, and the local language for the ease of customers to understand.
4. Limit Risk: RBI also directed that banks impose ‘risk mitigation measures’ according to the transaction limit and transaction velocity, among other things, depending on the risk perception.
“Banks shall put in place appropriate risk mitigation measures in accordance with their policies like transaction limit (per transaction, daily, weekly, monthly), transaction velocity limit, fraud checks, etc. depending on their risk perception,” said RBI.
5. Surveillance mechanism: The central bank also said that it wants the banks to impose transaction monitoring and surveillance mechanisms, which will study the customer transaction behaviour pattern and monitor unusual transactions in the system.
“Banks shall put in place risk-based transaction monitoring and surveillance mechanism. Study of customer transaction behaviour pattern and monitoring unusual transactions or obtaining prior confirmation from customers for outlier transactions may be incorporated in the systems in accordance with the Fraud Risk Management Policy of the bank,” said RBI in its draft.
