The Reserve Bank of India (RBI) has issued its final guidelines for digital banking channels, requiring banks to record or document the explicit consent of customers before providing digital banking services.
The guidelines make it clear that banks cannot mandate customers to opt for any digital banking channel to access facilities such as debit cards.
Banks have been instructed to implement risk mitigation measures according to their internal policies based on their risk perception. These measures may include setting limits per transaction, daily, weekly and monthly limits, transaction velocity limits and fraud checks.
RBI stated that while some services may be more convenient when offered together, the choice to apply for digital banking facilities must lie solely with the customer. It clarified that banks may continue to obtain and record mobile numbers to send transaction alerts and for other purposes aligned with KYC requirements at the time of account opening.
The regulator said that wherever specific requirements have been prescribed by the RBI or by payment system operators such as NPCI or card networks, the stricter of the two shall apply. Banks offering mobile banking services through channels other than mobile applications must ensure these services remain accessible to customers irrespective of their mobile network provider.
The guidelines also mandate that banks implement transaction monitoring and surveillance systems based on risk assessment. The display of third-party products and services on digital banking channels will be restricted unless specifically permitted by the regulator. Banks must clearly inform customers that SMS and email alerts will be sent to the mobile number or email registered with the bank for all account operations, both financial and non-financial.
Further, banks have been directed to comply with existing customer protection guidelines and ensure that their terms and conditions meet regulatory standards.
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