Page 9 - Banking Finance March 2021

RBI CORNER

phishing, remote access of mobile participants to better differentiate total balance across all savings bank or
devices and educated to secure and among banks to take an informed current accounts or any other account
safeguard their account details, decision in availing their products and of a depositor may be allowed to be
credentials, PIN, card details, devices, services." withdrawn, said the RBI In a
etc," it said. statement late, February 19.
To operationalize the cost-recovery
With regard to mobile apps, it asked framework for banks, peer groups The Deccan Urban Cooperative Bank
to deactivate the older application based on the asset size of banks as on customers can set off their loans
versions in a phased but time-bound March 31 of the previous year will be against deposits subject to conditions.
manner not exceeding six months from identified. The central bank will The central bank said it issued the
the date of release of newer version. consider three parameters - average directions to bank's chief executive
number of maintainable complaints officer. According to the Reserve Bank
RBI advises banks to per branch, average number of of India's statement, 99.58 per cent of
maintainable complaints per 1,000 the depositors are fully covered by the
improve grievance
accounts held by the bank; and Deposit Insurance and Credit
Redressal mechanism average number of maintainable digital Guarantee Corporation (DICGC)
RBI asked banks to step up disclosures complaints per 1,000 digital insurance scheme, a wholly-owned
on customer complaints and cost of transactions executed through the subsidiary of the central bank itself, and
redressal, cautioning lenders that fail bank by its customers. provides insurance cover up to Rs. 5
to improve their redress mechanism If there is an excess of one parameter, lakh on bank deposits.
quickly will be charged. 30 per cent of the cost will be The Reserve Bank added that putting
At the end of March 2020, the total recovered from banks. In case of the bank under specific restrictions
number of complaints across various excess in two parameters, 60 per cent should not be construed as a
offices of RBI stood at 3,08,630. This of the cost will be recovered, and if the cancellation of its banking licence.
is a steep rise from 1,95,901 bank is found lacking in all three Deccan Urban Co-operative Bank will
complaints outstanding at the parameters, 100 per cent of the cost continue to undertake banking
ombudsman offices, as per data from would be recovered from the bank. business with restrictions till its
the Trends and Progress Report of the financial position improves. It may
RBI. Deccan Urban Co- consider modifications of the directions
If a lender has higher unresolved operative Bank placed depending upon circumstances.
complaints than average, it will be
charged. Bank customers, however, under RBI monitoring State Bank of Sikkim
will continue to enjoy free cost of Reserve Bank of India has imposed a under RBI's purview
redressal. withdrawal cap of Rs.1,000 on
The central bank said night this was customers of the Deccan Urban Co- RBI has brought State Bank of Sikkim
under its regulatory purview. The
necessitated because of increasing operative Bank and has barred the bank, established five years before
customer grievances lodged with the lender from granting new loans or Sikkim acceded to India in 1973,
banking ombudsman, which merited accepting deposits due to its liquidity provides treasury operations for the
greater attention by banks. position. The bank is restricted to
undertake any fresh business, including state government. It only operates
Disclosures, according to the central renewing any fresh loans or making within Sikkim and is wholly-owned by
bank, "serve as an important tool for new investments. The central bank the State Government.
market discipline as well as for
said that the directions for the bank will The bank currently has 42 branch
consumer awareness and protection."
remain in force for six months from the offices and operates three revenue
"Appropriate disclosures relating to close of business on February 19 and counters for government works. The
the number and nature of customer are subject to review. ''Considering the bank's ownership structure will not
complaints and their redress facilitate bank's present liquidity position, a sum change, but it will be regulated by the
customers and interested market not exceeding Rs.1,000 only of the RBI on a par with other banks. Emails

BANKING FINANCE | MARCH | 2021 | 9