Banks seek nod to extend doorstep services

Banks have asked the Reserve Bank of India (RBI) to allow them to provide doorstep cash delivery services to individuals also. The apex bank had earlier permitted banks to offer cash delivery services only to corporates, government departments and public sector units.

Under the aegis of the Indian Banks' Association (IBA), banks informed the RBI that many customers would not be able to take advantage such service due to the restriction.

They suggested the service could be extended only to select customers such as high net worth individuals (HNIs) and individuals with whom the bank has a strong relationship, which would help mitigate risk.

The RBI had also mandated that a cheque should be received at a bank branch prior to providing doorstep cash delivery and demand draft delivery services.

Banks have submitted the view that this precondition defeated the very convenience of the service offered. With most banks having secured banking facilities with telephone PIN authentication, banks have asked that customers be allowed to lodge doorstep banking requests through any secure convenient channel, including making a telephonic request.

Banks have assured the central bank that they would not compromise on know your customer (KYC) and anti-money laundering (AML) guidelines. All AML control measures and reporting requirements as prevalent when the customer visits the branch would be applicable. They would build in adequate risk control measures and safeguards while accepting instruments or delivering cash at the customer's doorstep.

Since the service was limited to existing customers, there would be no additional AML issues. As cheques are eventually passed after verification of customer's signature at the branch and clearing centres, this would ensure adherence to guidelines, said banks.