RBI committee proposes secure & customer friendly measures

Proposes introduction of SMS based system to block stolen ATM card, single common toll free call number for all banks

PTI | August 4, 2011



With a view to making banking sector more secure, the RBI has proposed several measures, including introduction of a system under which a person would be able to block his stolen ATM card through an SMS.

The RBI has also proposed a raise in insurance on bank deposits to Rs 5 lakh and having a single common toll free call number for all banks, besides zero liability against loss in ATM and online transactions.

These form part of the recommendations of the Committee on Customer Service in Banks, constituted under chairmanship of former SEBI chairman M Damodaran, by RBI last year.

The committee -- which was tasked to look into banking services rendered to retail and small customers, including pensioners -- had submitted its report last month and the proposals were released into the public domain today.

In its report, the Damodaran committee proposed "instant blocking of ATM card through SMS-block for lost/misused cards." It is expected to help people who currently are required to call up the bank in case of card loss.

"If an ATM card has been misused by another person, on receipt of SMS about use of the card, the customer should be able to immediately send return SMS to block the card with a single word like 'BLOCK' to prevent further withdrawals.

"...It is observed that considerable time is lost in locating the numbers of accounts, phone numbers etc., which gives the fraudsters more time to commit fraud," the report said.

The report further recommends that in case of default by banks, the Rs one lakh cover guaranteed to each account under current rules should be raised to Rs 5 lakh.

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter