Page 36 - Banking Finance December 2022

ARTICLE

of the important steps taken by RBI are quick, affordable and accessible dispute resolution
mentioned below: system for customers. With the possibility of customer
grievances increasing in line with the manifold increase
1. Video KYC:
in digital transactions, the ODR system will eliminate
Video based Customer Identification Process (V-CIP) is
the requirement of additional manpower to handle
an alternate method of customer identification with
disputes / grievances.
facial recognition and customer due diligence by an
authorised official by undertaking seamless, secure, live,
4. Self-Regulatory Organisation (SRO)
informed-consent based audio-visual interaction with
SRO shall set and enforce rules and standards relating
the customer to obtain identification information
to the conduct of member entities in the industry, with
required for CDD purpose, and to ascertain the veracity
the aim of protecting the customer and promoting
of the information furnished by the customer through
ethical and professional standards, including addressing
independent verification and maintaining audit trail of
larger concerns, such as protecting customers,
the process. Such processes complying with prescribed
furthering training and education and striving for
standards and procedures shall be treated on par with
development of members, the industry and the
face-to-face CIP.
ecosystem as a whole.
2. Door Step Banking:
5. Pan-India Cheque Truncation System (CTS)
Banks have been asked by the RBI to offer the doorstep
To leverage the availability of CTS and provide uniform
banking services on pan India basis and have a
customer experience irrespective of location of bank
framework for determining the nature of branches
branch, banks were advised to ensure that all their
where these services will be provided mandatorily and
branches participate in image-based CTS by September
those where it will be provided on a best effort basis
30, 2021.
and make the policy public.
The list of branches offering such doorstep banking 6. 24x7 Availability of RTGS System
services has to be displayed and updated on the bank's The Reserve Bank made available the RTGS system
website regularly. Banks will also have to transparently 24x7 on all days of the year from 00:30 hours on
show the charges, in this regard, which needs to be December 14, 2020. India has become one of the few
prominently published on their websites. countries across the world where RTGS system operates
round the clock throughout the year. Round the clock
3. Online Dispute Resolution (ODR) availability of RTGS has provided extended flexibility to
The ODR system was conceptualised as a rule-based businesses for effecting payments and enabled
technology-driven customer-friendly mechanism for introduction of additional settlement cycles in ancillary
resolving customer grievances and disputes with zero payment systems.
or minimal manual intervention. This will provide a
7. Digital Payment Transactions - Streamlining QR Code
Infrastructure
The Reserve Bank mandated that existing proprietary
QR codes shall migrate to interoperable QR codes by
March 31, 2022 and there shall not be further issuance
of proprietary QR codes. These measures are expected
to strengthen the acceptance infrastructure and
enhance customer convenience due to interoperability
and augment system efficiency.

8. Card Transactions in Contactless Mode - Relaxation
in Requirement of Additional Factor of Authentication
(AFA)
The Reserve Bank enhanced the per transaction limit

36 | 2022 | DECEMBER | BANKING FINANCE