November 12th, 2014 by CHEQUEMAN
The Reserve Bank said bank accounts will not become inoperative if a dividend cheque has been credited in it in the previous two years.
“Since dividend on shares is credited to savings bank accounts as per the mandate of the customer, the same should be treated as a customer induced transaction.
“As such, the account should be treated as operative account as long as the dividend is credited to the Savings Bank account,” RBI said in a notification.
A bank account become inoperative or dormant if no credit or debit transaction has been conducted for a period of two years.
RBI further said that such, the account should be treated as operative account as long as the dividend is credited to the Savings Bank account.
This clarification has been issued in view of the doubts raised by some bankers whether an account in which only dividend has been credited can be treated as inoperative after two years.
Source: The Economic Times
November 7th, 2014 by CHEQUEMAN
To clamp down on cheque-related fraud cases, the Reserve Bank of India (RBI) on Wednesday asked banks to alert account holders by a phone call and contact the base branch in case of non-home cheques before clearing high value payments.
The RBI also asked banks to send an SMS alert to payer/drawer when cheques are received for clearing and examine cheques under UV lamp for clearance beyond Rs 2 lakh.
The central bank further said multi-level checking should be done before clearing cheques above Rs 5 lakh.
“Banks may consider the following preventive measures for dealing with suspicious or large value cheques: Alerting the customer by a phone call and getting the confirmation from the payer/drawer and contacting base branch in case of non-home cheques,” RBI said in a communication to banks.
The RBI said directions have been issued in the wake of a rise in the number of cheque-related fraud cases. It said cases have been reported where even though original cheques were in the custody of account holders cheques in the same series were presented and encashed by fraudsters.
The RBI said banks may resort to given directions selectively, if not feasible to be implemented systematically.
It further asked banks to take appropriate precautionary measures to ensure that the confidential information are neither compromised nor misused either from the bank or from the vendors’ side.
“Due care and secure handling is also to be exercised in the movement of cheques from the time they are tendered over the counters or dropped in the collection boxes by customers.”
Besides, it also asked banks to ensure usage of CTS-2010 compliant cheques, strengthen infrastructure for cheque handling, KYC compliancy, close monitoring of credits and debits in newly opened accounts.
The central bank said such frauds could have been avoided had due diligence been observed at the time of handling or processing of the cheques.
“Banks are, therefore, advised to review and strengthen the controls in the cheque presenting/passing and account monitoring processes and to ensure that all procedural guidelines including preventive measures are followed meticulously by the dealing staff,” RBI said.
Source: Business Today
November 3rd, 2014 by CHEQUEMAN
For individuals with disabilities, the Reserve Bank of India (RBI) and the Indian Banks Association (IBA) have put in place guidelines for opening and operating accounts.
1. In case of customers who may have lost, say, their arms, toe impressions will be accepted for opening the accounts. Now, if the unfortunate incident has occurred after opening of the account and the customer wishes to make a withdrawal, she can visit the bank. The identity will be established on the basis of know your customer (KYC) procedure completed at the time of opening the account. The photograph provided then will serve as the identity proof and officials will find a solution to help the customer carry out transactions. A medical certificate and witnesses who can confirm the identity would also be required
2. In cases where the customer cannot be physically present at the branch, bank officials could extend the courtesy of visiting him or her to complete these formalities. The banking system has outlined procedures that have to be followed for customers who may be facing physical, mental and visual impairment.
3. For those who cannot sign due to the loss of both hands, banks need to ensure that there is physical contact with the withdrawable instrument by the account holder. The signature may be by means of a mark, which can be placed by the person in any manner. It could be even a toe impression. This mark has to be identified by two witnesses, where one of them has to be a bank official. The customer may be asked to indicate to the bank as to who would withdraw the amount from the bank on the basis of cheque or withdrawal form. This person has to be identified by two independent witnesses. The person who would be actually drawing the money from the bank should be asked to furnish his or her signature to the bank.
4. Similarly, bank officials are required to assist visually impaired accountholders in carrying out day-today transactions. “All banking facilities including cheque book, ATM and locker facilities have to be provided to such individuals. The banks are also required to assist such persons in withdrawal of cash. In order to help such persons, it has been suggested to banks by the IBA that they should provide talking ATMs with Braille keypads for visually-impaired persons.
5. For those with conditions like autism, cerebral palsy and severe multiple disabilities, banks may ask for guardianship certificates issued by local level committees set up under the National Trust for the Welfare of Persons with Autism, Mental Retardation and Multiple Disabilities Act 1999. They can also rely on guardianship certificates issued by a district court under the Mental Health Act.
The legal guardians appointed under these provisions can open and operate the accounts.
Source: The Economic Times