Friday, July 07, 2017


I am happy to note that after filing RTI to know status of above issue with RBI and addressing letter dated 29-06-2017 to Dy. Governor RBI with copy to Ministry of Fiance, Dept of Financial Services [which is uploaded on this blog], RBI has  issued operative circular dated 06-07-2017 and is uploaded on its website at:

Citizens have to be alert and chase patiently govt, its department and regulators for sensitizing.

Thursday, June 29, 2017


Date: 29-06-2017                                                                             By Email

Dy. Governor,
Reserve Bank of India
Shahid Bhagat Singh Rd,
Ford, Mumbai 400001

Respected Sir,

Subject: Customer Protection – Limiting Liability of Customers in Unauthorised
Electronnic Banking Transaction.

I thank RBI for initiating various steps to protect common customers and ensuring fair treatment to them. However of late I feel process is slowed down to the detriment of common Indian who is now forced to resort to digital banking, with no cover for his protection. Even frauds above Rs.10000 up to Rs.100000/- have been absolved from police complaint/FIR by bank branches, vide CVC circular No. 06/06/17 dated 14-06-2017, if staff is not involved.

RBI had issued draft circular No DBR. No.Leg.BC/09.07.0005/2016-17 dated        11-08-2016 for public consultation. Due to digital India initiative of Central Govt and in absence of proper education in digital banking, such frauds have multiplied many folds, specially against house wives, senior citizens, villagers, illiterate or semi literate citizens and those who are not tech-savvy. Lack of protection umbrella to said strata of population will have serious consequences for middle and lower class which may ultimately puncture digital initiative.

Hence above initiative is need of the hour. However though draft circular was issued in Aug 2016, policy and operative circulars have not been issued by RBI. Vide my enclosed RTI application and its reply, it is clear that RBI is still in process of finalizing the issue. Such delay has already caused financial loss in crores to common citizens and digital frauds in banks are multiplying at alarming rate. I am enclosing two paper cuttings  just for your reference. In addition, I know net banking frauds of nearly 80.00 lakhs committed in Rajkot and for Rs.78.00 lakhs in Vadodara [this fraud is reported in Gujarati news papers yesterday and also today]

This inordinate delay in issuing policy and operative circular is causing immense tension in using digital banking despite near-compulsory mandate of Govt. for digital financial transactions. I have guided many citizens who lost money due to digital frauds. My experience with Banks had been horrible.

I humbly urge to expedite the matter and ensure that system is put in place so that liability of customers for unauthorized electronic banking transactions is reduced to zero.

Thanking you

Yours faithfully,

J P Shah
Encls: a/a

Copy by email to: Addl Secretary [Banking],
 Dept of Financial Services, MoF, New Delhi

–with a request to sensitize RBI for urgent action 

Monday, June 19, 2017


Date: 19-06-2017

1. Central Vigilance Commission, New Delhi

2. Reserve Bank of India, Dept of Banking Supervision, Central Office, Mumbai
[ on]

Dear Sirs,

Subject: Frauds in Public Sector Banks above Rs.10000 and Below Rs.100000/-

Vide circular No. 06/06/17 dated 14-06-2017, CVC has advised public sector banks not to report above frauds to State Police if staff is not involved, in view of practical difficulties faced by PSBs. This has been decided by CVC in consultation with RBI. Only internal enquiry is to be conducted by Banks.

Such a decision will encourage and facilitate online fraudsters to defraud small depositors in banks committing each fraud below Rs.100000/- and get immunity from police action, except if the account holder files complaint or FIR with State Police. Such a complaint by common man is not taken seriously by Police [practical difficulty of common man], However, if complaint or FIR is filed by Central Govt entity, usually it is taken little seriously. With digital India initiative of Govt, such cyber frauds will increase many folds in near future and common account holder will be looted without any help. I am attaching two news paper cuttings as examples. RBI is yet to come out with policy and operative guidelines for zero liability of victim of fraud. Common man cannot be made to lose his hard earned money for convenience of Banks.

Only police has powers to question transferee banks/wallets of defrauded amount. Similarly only police can get information of mobile SIM, which is used to get OTP/CVV/password and details of debit card. PSB has no such power to get the information of accounts or stop further transfer of defrauded amount. Only police can stop further transfer or withdrawal from transferee bank/wallet. In absence of this information fraudsters cannot be located. Hence name, address etc of fraudster will never come to light and common citizen will not get back amount.

This decision is not in the interest of common account holders and I request CVC and RBI to review the same. I shall be shortly seeking from CVC and RBI information, which lead to such anti-citizen decision, under RTI Act

Copy to: Dept of Fiancial Services, Ministry of Finance, GoI, New Delhi

Friday, June 09, 2017

Auto-Renewal of Term Deposit Receipts – Suggestion

Date: 07-06-2017                                                                             by email


Chief General Manager
Consumer Education and Protection Department
Reserve Bank of India
1st Floor, Amar Building, Sir P.M. Road,
Mumbai-400 001

Respected Sir,

Subject: Auto-Renewal of Term Deposit Receipts – Suggestion

I have experienced that very few banks convey details of auto-renewal of term deposits to customers either by email or SMS or hard copy. The system of the bank auto-renews as per standing mandate at the time of initial deposit, without giving details of auto-renewed deposit receipt as to rate of interest, maturity value, next due date etc. Thus depositors are in dark as to details of auto renewed term deposit receipts to the customer. Such a situation is anti-consumer and breaches right to know. RBI too will not appreciate such secrecy by banks, when money belongs to depositors and on which banks survive.

I humbly suggest that Banks should be advised to mandatorily advise vital information of auto-renewed term deposit by email or SMS or in hard copy.

Thanking you,
Yours faithfully,
 J P Shah

Copy by email to:
Consumer Education and Research Centre, Ahmedabad.

Monday, March 20, 2017


I have made following suggestion to RBI:

I understand that 3D secure is compulsory for online payments through debit/credit card. I am facing problem of not getting OTP for many of payments on my mobile. At times mobile may not be handy or net may not be available or not charged or under repair etc. Hence I suggest that 3D secure be made optional for transactions up to Rs.1000/- each. Instead ATM PIN be keyed-in for such small amount transactions [[like at merchant shops POS]. 3D secure for small amount payment online is irritating also. Please consider positively in the interest of common citizen who uses online for small payments.