'RBI processes are rugged enough to handle scams'

'RBI processes are rugged enough to handle scams'

Rest assured that customer money is safe, says RBI Ombudsman. Hit by scams in nationalised banks, the Reserve Bank of India (RBI) processes are rugged enough to efficiently monitor the system, said a senior RBI official.


Briefing reporters, on Tuesday, RBI banking ombudsman M Palanisamy said, “Solitary instances of fraud need not bring down a bank. Banks are subject to regulation and also online reporting of their Non-Performing Assets (NPAs) and offsite surveillance system. Hence, the monitoring is even more robust.”


“Many banks across the globe are in crisis. But only in India, with constant monitoring by RBI, all banks including foreign one are running properly,” Palanisamy said. Customers can rest assured that their money is safe in the bank.

With 30 per cent increase in ATM debit/credit card complaints received by the banking ombudsman, the banks have been asked to leverage technology to deal with cloning cases. The banks should replace the old debit/credit with photo embedded to reduce the misuse.


In order to improve quality of services, banks should not levy preclosure charges on home loans on floating rate charges. Banks should not levy penal charges on non-maintenance of minimum balance.
“Banks have been told to offer what customers want. We have told bankers to study customer needs as there is a paradigm shift happening the way customers bank,” he added.


In order to ensure that customers are treated fairly, banks are advised to follow a uniform, fair and transparent pricing policy.


Considering the technology available with banks and telecom service providers, it should be possible for banks to charge customers based on actual usage of SMS alerts.


Banks are advised to provide   TDS certificates in Form 16A to customers while deducting tax at source. The ombudsman held awareness programmes in Kollegal, Chamarajnagar, Holakere and Davanagere to popularise the scheme.

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