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Mangalore, Aug. 24 The Reserve Bank of India has announced certain restrictions on the amount and the number of cash withdrawals at other bank’s ATMs only to avoid misuse of the facility, according to Mr G. Padmanabhan, Chief General Manager, RBI.

Delivering a lecture on ‘Payment and Settlement Systems’ at the corporate office of Corporation Bank here recently, he said that this decision is based on the initial feedback on the free usage of ATM services across banks. Such steps do not hamper normal usage.

He said that there is a greater need to strengthen the payment systems to safeguard the customer’s interest, and hence, banks should encourage RBI’s initiatives in implementation of secure and sound payment systems.

The RBI has decided that the banks shall continue to be intermediaries for transfer of funds irrespective of the technology service provider for enabling such facilities.

After successful introduction of the cheque truncation system, physical movement of cheque has been totally eliminated at Delhi and now RBI is contemplating introduction of the same in Chennai, he said.

Corporation Bank is early mover in taking technology initiatives for enhancing customer empowerment, Mr Padmanabhan added.

Quoting Mr J.M. Garg, Chairman and Managing Director, Corporation Bank, a bank release said that the payment and settlement system has witnessed dramatic change over a period of time. He emphasised on improving the efficiency of the settlement system to migrate from physical clearing to electronic settlement based clearing.

Mr B.R. Bhat and Mr M.R. Nayak, General Managers of Corporation Bank, spoke on the occasion.

(This article was published in the Business Line print edition dated August 25, 2009)
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