Page 9 - Banking Finance August 2017

RBI CORNER

RESERVE BANK

NEWS
NEWS
NEWS
NEWS
NEWS

Ministry to push back the RBI deadline on Basel III S Ganesh as Head-Dept
norms of Information Technol-
In a recent meeting with RBI, senior officials from the ministry pleaded for de-
ferment of Basel III implementation dates be- ogy: RBI
yond March 2019, saying it will help banks meet S Ganesh Kumar has been appointed as
the capital needs and increase credit flow to pro- one of the Execu-
ductive sectors along with balance sheet clean- tive Directors of
up. The global capital to risk norms, called Basel the Reserve Bank
III capital regulation, is being implemented in of India. He was
phased manner by Reserve Bank of India since earlier Chief Gen-
April 1, 2013 and should be fully implemented as on March 31, 2019. Then the eral Manager-in-
banks have to maintain a minimum common equity ratio of 8 % and total capital Charge, Department of Information
ratio of 11.5 % by March 2019. Technology. He replaced Chandan
Sinha who took up voluntary retire-
Onus on Banks to compensate for online frauds ment last month. In his new role,
If a customer loses money from his/her account due to online fraud then RBI Ganesh Kumar will look after the De-
made it clear to be the bank's onus to compensate partment of Information Technology,
for the loss. The Banks are liable for unauthorized Department of Payment and Settle-
electronic banking transactions, provided the cus- ment Systems and Department of Ex-
tomer communicates such transactions within a rea- ternal Investments and Operations.
sonable time period. This is the second time since May
that the central bank is taking a pro-customer ap- Rs 200 notes coming soon
proach to safeguard users against online frauds. Not- The Reserve Bank of India (RBI) plans
withstanding the umbrella cover offered to customers on these transactions, if to introduce Rs
communication from the customer was delayed and made 4-7 days after the 200 notes in the
incident, the customer's liability was a maximum of Rs. 5,000, Rs. 10,000 and near future to ease
Rs. 25,000 depending on the type of bank account or card. pressure on lower-
Ombudsman not to cater note-ban issues denomination currencies that are in
short supply. It is expected to get
"Banking Ombudsman Scheme (BO Scheme), 2006 specifies 27 grounds of com- released by the end of 2017 and it
plaints under which complaints can be lodged. Complaints related to demonetisation will greatly help in narrowing the
are not a ground of complaint specified under the Scheme," a Right to Informa- demand and supply gap in smaller-
tion (RTI) query sent to the Reserve Bank has revealed. Thus, customers' com-
denomination currency bills.
plaints about note ban issues cannot be entertained under the scheme.

BANKING FINANCE | AUGUST | 2017 | 9

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