Section 23 of the Banking Regulation Act, 1949 - Doorstep Banking - ଆରବିଆଇ - Reserve Bank of India
Section 23 of the Banking Regulation Act, 1949 - Doorstep Banking
RBI/2022-23/66 June 8, 2022 All Primary (Urban) Co-operative banks Madam / Dear Sir Section 23 of the Banking Regulation Act, 1949 – Doorstep Banking In terms of Section 23 of the Banking Regulation Act, 1949 (AACS) Primary (Urban) Co-operative Banks (UCBs) are required to seek prior approval of the Reserve Bank for opening any new place of business including offering services at the doorstep of the customer. 2. Keeping in view the above, it has been decided to allow financially sound and well managed (FSWM) UCBs to provide Doorstep Banking Services to their customers on a voluntary basis. However, Non-FSWM UCBs would have to seek prior approval of concerned Regional Office of Department of Supervision of the Reserve Bank to provide Doorstep Banking Services. 3. Eligible UCBs may formulate a scheme for providing Doorstep Banking Services to their customers, with the approval of their Boards, in accordance with the guidelines enclosed to this letter. 4. UCBs are further advised to take into account the various risks that may arise on account of offering Doorstep Banking Services to customers either directly through own employees or through agents and take all necessary steps to manage the same. 5. The operation of the scheme may also be reviewed by the Boards of UCBs on a half-yearly basis during the first year of its operation. The scheme may be reviewed thereafter on an annual basis. Yours faithfully (Shrimohan Yadav) Encl: as above Guidelines for Doorstep Banking by UCBs 1. Services to be offered UCBs can voluntarily offer the following banking services to individual customers/ natural persons at their doorstep: -
UCBs which offer services of pick-up of cash may take suitable steps to educate their employees and agents to enable them to detect forged and mutilated notes so as to avoid frauds and disputes with customers. 2. Mode of Delivery
Where UCBs engage the services of Agents for delivery of services, it should be ensured that the policy approved by the Board lays down the broad principles for selection of Agents and payment of fee/commission etc. UCBs must refer to the guidelines on Managing Risks in Outsourcing of Financial Services by co-operative banks issued vide our circular DoR.ORG.REC.27/21.04.158/2021-22 dated June 28, 2021 and ensure that the principles enumerated therein are complied with while offering Doorstep Banking Services. 3. Delivery process
4. Risk Management It may be ensured that the agreement entered into with the customer does not entail any legal or financial liability on the bank for failure to offer doorstep services under circumstances beyond its control. The services should be seen as a mere extension of banking services offered at the branch and the liability of the bank should be the same as if the transactions were conducted at the branch. The agreement should not provide any right to the customer to claim the services at his doorstep. The UCB should provide cash limits (for collection as well as delivery) for their employees/ agents and customers, for doorstep banking. The UCB should also take all necessary steps to contain technology risk while providing these services. 5. Transparency Charges, if any, to be levied on the customer for doorstep services should be incorporated in the policy approved by the Board and should form part of the agreement entered into with the customer. The charges should be prominently indicated on the banks’ website and brochures offering doorstep services. 6. Other conditions
7. Redressal of Grievance
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