Banks may seek consent before allowing transfer of funds to your account

Banks may soon seek your consent before allowing a transfer of funds to your account.

The Union government has written to the Reserve Bank of India (RBI), seeking its views on a mechanism to enable willing bank customers to have control over deposits of money in their accounts.

The move is a follow-up to instances of illicit deposits — after demonetisaton — in bank accounts opened under the Pradhan Mantri Jan-Dhan Yojana (PMJDY).

Under the proposed mechanism, the finance ministry has said banks will notify customers when someone tries to deposit money in their accounts, a government