The Hindu Business Line : RBI issues norms for doorstep banking

Making it easy
Cash delivery services to corporate clients, public sector units and govt departments.
DD delivery for retail and corporate customers on written requisition.
Banks can deploy employees or hire agents.

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Mumbai, Feb. 21

Banking services will now be available at the doorstep. Individual customers can have cash and other bank instruments picked up from their home or office while only demand drafts will be delivered. Corporate customers can additionally have cash delivered against cheque received at the bank's counter.

The Reserve Bank of India on Wednesday issued guidelines for banks on "Doorstep Banking" allowing banks to either deploy their employees or hire agents to extend these services.

The new guidelines allow banks to extend cash delivery services to corporate clients, public sector units and departments of Central and state governments against the receipt of cheque at the branch, and not based on telephonic requests. Individual customers cannot, however, avail of this facility.

Similarly, the delivery of demand drafts for both individual and corporate customers will be done by debiting the account on the basis of requisition in writing or cheque received and not against cash collected at the doorstep.

The RBI has, however, cautioned banks about risks arising out of these services and asked them to prescribe cash limits. "Banks are advised to take into account the various risks that may arise on account of offering doorstep banking services to customers directly or through agents and take effective steps to manage the same. Banks may specifically consider prescribing cash limits for their agents and customers in this regard," says the circular.

According to the guidelines, banks have been asked to acknowledge cash collection by issuing receipts and ensuring that it is credited to the customer's account on the same day or the next working day.

The charges for these services would have to be prominently indicated on brochures.

These services will be provided only to those customers who have adequately fulfilled the bank's "Know Your Customer" norms.

Banks will now have to prepare their own schemes based on the guidelines with the approval of their board. The central bank has also asked banks to appoint a Grievance Redressal Machinery for redressing complaints about services rendered by its `agents.' The name and the telephone number of the designated officer should be made available to the customers on the bank's website.

Banks have been asked to educate their `agents' about the incidence of circulation of forged notes, particularly of high denominations. "Banks are advised to take suitable steps to educate their "Agents" to enable them to detect forged and mutilated notes so as to avoid frauds and disputes with the customers," said the circular.

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