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Thursday, September 1, 2016

Allow mobile registration from any bank’s ATM: RBI

With cellphones becoming a crucial part of banking, the RBI has made it mandatory for banks to allow customers to register their mobile numbers through any ATM. 

Banks have also been told not to insist that customers visit only their home branch to get their mobile numbers registered and to have this facility for customers across branches. 

In addition, banks have also been asked to make available mobile registration through internet banking. 

Registering mobile numbers (linking numbers to bank accounts) is important because it facilitates SMS alerts for every transaction and helps curb fraud. Mobile numbers are also used to send one-time passwords (OTPs) in transactions where the credit card is not present. Banks also require online remittances to be authenticated with OTPs. 

According to credit card companies, SMS alerts and OTPs have substantially brought down frauds in banking. Banks also require customers to register their mobile numbers to avail of services like 'missed call banking' and mobile banking. A registered mobile number is a prerequisite for using a mobile banking application. 

Earlier this month, the RBI had made it mandatory for banks to get customers registered for alerts for electronic banking transactions. This was part of its draft guidelines on limiting liability of customers in fraudulent electronic banking transactions. Under these guidelines, the longer the time taken to notify the bank, the higher will be the risk of loss to the customer. To facilitate early reporting, banks were asked to provide 24x7 access through multiple channels for reporting fraudulent .. 

Source:-The Economic Times

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