Page 9 - Banking Finance April 2019

RBI CORNER

RBI to bring into circulation Rs 100 bank notes in new RBI launches ombuds-

series man scheme for digital
RBI has said it would shortly put into circulation new-series Rs 100 denomina- payments
tion bank notes bearing the signature of its Gover-
nor Shaktikanta Das. The RBI will shortly issue Rs 100 RBI has launched an ombudsman
denomination bank notes in Mahatma Gandhi (new) scheme to
series bearing the signature of Das, the central bank tackle frauds
said. The design of these notes is similar in all respects associated
to the Rs 100 bank notes in circulation currently. with digital
transactions.
RBI approves amalgamation of DBS Bank The banking
regulator had indicated in Decem-
RBI said it has approved the amalgamation of 'DBS Bank, India' with 'DBS Bank
India', the entity which has been granted permission to ber that it would set up a separate
ombudsman for digital payments.
operate as a wholly owned subsidiary (WOS) of the
Singaporean lender. It can be noted that DBS used to "The scheme is introduced to facili-
operate in the 'branch model' and is among the first for- tate the satisfaction or settlement of
eign lenders to come forward and operate as a WOS. RBI complaints regarding digital transac-
said the scheme of amalgamation between the two enti- tions undertaken by customers of sys-
ties has been sanctioned under the provisions of the Banking Regulation Act, 1949. tem participants as defined under the
scheme," the RBI said in a statement.
RBI proposes clawback of CEO perks The scheme, launched under Section
RBI has proposed revamp in CEO salaries, requiring at least half of bankers' 18 of the Payment and Settlement
compensation to come under variable pay with the Systems Act, 2007, will provide a
institution having the right to recover past bonuses, cost-free and expeditious complaint
if the bank has high level of bad loans or hides bad redressal mechanism related to de-
debts. ficiency in customer services in digi-
tal transactions conducted through
The move follows RBI crack down on CEOs of private non-banking entities regulated by the
banks for divergence between bad loans disclosed by the bank and what RBI, it added.
emerged during the central bank's inspection. In a late evening discussion pa-
Complaints related to digital transac-
per, the central bank said that compensation practices, especially of large fi-
tions, conducted through banks, will
nancial institutions, were one of the important factors which contributed to the
global financial crisis in 2008. "Employees were too often rewarded for increas- continue to be handled under the
ing the short-term profit without adequate recognition of the risks and long- Banking Ombudsman Scheme.
term consequences that their activities posed to the organizations. The offices of Ombudsman for Digital
Transactions (ODT) will function from
RBI sounds warning for AnyDesk app the existing 21 offices of the Banking
Ombudsman, and will handle com-
RBI has warned public not to download an app called "AnyDesk" through social
plaints of customers from their respec-
media or any other channel. After downloading this tive territorial jurisdiction.
app, your bank account may become empty within
minutes. RBI has issued a warning in this regard. The RBI may appoint one or more of
"AnyDesk" is a software that can do transactions its officers in the rank of Chief Gen-
from your bank account through your mobile or eral Manager or General Manager
laptop. On February 14, the RBI alerted banks about to be known as Ombudsman for Digi-
tal Transactions, under the scheme,
potential fraudulent transactions on the unified pay-
for a period not exceeding three
ments interface (UPI) platform. RBI said that the cautionary notice was issued
years at a time.
in the wake of rising number of fraud using the UPI platform.
BANKING FINANCE | APRIL | 2019 | 9