RBI says its system rugged enough to handle scams

Customers can be rest assured that their money is safe in whichever bank they are kept in country

The banking system must have been rocked by the Syndicate Bank fraud that was unearthed a while ago, but, Reserve Bank of India (RBI) is not flustered, going by the reaction of RBI Banking Ombudsman (BO) M Palanisamy said today in Bangalore.

Speaking to reporters in Bangalore today, Palanisamy said that a solitary instance of fraud cannot bring down a bank.

"Banks are subject to regulation and online reporting of its NPAs (non-performing assets) and also the offsite surveillance system. Many banks across the globe are in crisis. But in India, with constant monitoring by the RBI, all banks, including foreign ones are running properly," Palanisamy said.

The customers can be rest assured that their money is safe in whichever bank they are in the country. Banks, he said, have been asked to erect "Chinese Wall".

With a 30% increase in ATM debit/credit card complaints being received by the Banking Ombudsman, the banks have been asked to leverage technology to deal with cases of cloning of cards. Meanwhile, he also said that banks should replace the old debit/credit with photo of the account holder and it must be chip-embedded to reduce their misuse.

In order to improve the quality of their services, banks should not levy any pre-closure charges on home loans on the floating rate charges. He also said, banks should not levy penal charges for non-maintenance of the minimum balance.

He also emphasised that minors above the age of 10 years may be allowed to open and operate savings bank account independently. "Banks have been told to listen on what customers want. We have told bankers to study customer needs as there is a paradigm shift happening the way customers bank," he added.