RBI Deputy Governor SS Mundra came down heavily on banks for charging customers exorbitant and high service charges including for minimum balance maintenance, mis-selling of third party insurance products, etc.

There is a relief in the offing for banking customers who face frauds through unauthorized online transactions. The Reserve Bank of India (RBI) will soon list out norms limiting liabilities of consumers in case of unauthorized electronic transactions in their bank accounts with the rise in incidents of frauds.

Customers will have zero liability if there is a breach of the security architecture and systems of the bank provided it is reported within three working days after receiving a communication from the bank. These norms come in given the rise in digital transactions post demonetisation.

The central bank will also shortly issue a minimum narration for most frequent transactions for the benefit of senior citizens.  Mundra also pointed to the issue of fake cheques going through the banking system.

“There are a number of complaints of fake cheques because serial number information is being compromised and also because the print quality of cheques is not too high. Banks have to be vigilant in this regard,” he said.

Additionally, Mundra added that once the original proof of identity and address is registered with a bank, after that a basic account can be opened without a proof of address and simple declaration and all the banks’ frontline staff should be aware and customers should be made aware about it.

Source: Money Control