Date: 29-06-2017 By Email
To
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
Email: as-dfs@nic.in
–with a request to sensitize RBI for urgent action
Good Suggestation. Common people are unaware of cyber security and hence become soft Target RBI to initiate a policy in this regard to limit the liability Zero to such innocent peoples
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