Block your atm card by sms

Block your ATM card by SMS?

With a view to make banking sector more secure and customer friendly, the RBI has proposed several measures including introduction of a system under which a person would be able to block his stolen ATM card through a SMS. The RBI has also proposed to raise the insurance on bank deposits to Rs 5 lakh and having a single common toll free call number for all banks, besides zero liability against loss in ATM and online transactions. These form part of the recommendations of the Committee on Customer Service in Banks, constituted under chairmanship of former SEBI chairman M Damodaran, by RBI last year. The committee -- which was tasked to look into banking services rendered to retail and small customers, including pensioners -- had submitted its report last month and the proposals were released into the public domain today. In its report, the Damodaran committee proposed "instant blocking of ATM card through SMS-block for lost/misused cards." It is expected to help people who currently are required to call up the bank in case of card loss. "If an ATM card has been misused by another person, on receipt of SMS about use of the card, the customer should be able to immediately send return SMS to block the card with a single word like 'BLOCK' to prevent further withdrawals. "...It is observed that considerable time is lost in locating the numbers of accounts, phone numbers etc., which gives the fraudsters more time to commit fraud," the report said. The report further recommends that in case of default by banks, the Rs one lakh cover guaranteed to each account under current rules should be raised to Rs 5 lakh. "With rise in general income levels resulting in increase in the size of individual bank deposits, this ceiling of Rs one lakh is considered insufficient. The Committee is of the view that this cover should be raised to at least Rs 5 lakh so as to encourage individuals to keep all their deposits in a bank," it said. The committee also suggested creation of a single common toll free call number for customer services for all banks. "The Indian Banking Association (IBA) should consider a toll free Common Call Center number (like Dial 100) for all banks. A customer would ring that number and thereafter get diverted to the bank concerned," it added. Banks are compulsorily required to get their deposits insured from Deposit Insurance and Credit Guarantee Corporation (DICGC). The committee also suggests setting up of a third party Know Your Customer (KYC) data bank. The proposals also include proper prescripttion of service charges for basic services, providing small remittances at reasonable price and providing floating rate housing loans on a non-discriminatory basis. The Damodaran committee said that product proliferation and an emphasis on incremental growth in fee-based income have prompted many banks to develop and market a bundle of products as one package which may not be in a homogeneous way. "The Committee felt that there was no principle of reasonableness in sale or delivery of such a bundled product to all customers. "The customers in general had expressed a desire to pay only for the product they use, would prefer plain vanilla products and are distinctly unhappy paying for an entire bundle, most of which, they feel they would never use," it said. With regard to no-frills account, it said the present guidelines for opening such accounts need to be further simplified to enable rapid financial inclusion. In case of delayed return or loss of title deeds in the custody of banks, customers should be given adequate compensation, the report added. Further, it proposed a zero liability against loss in ATM and online transactions. The RBI committee said withdrawal limit of prepaid instruments should be fixed at Rs 50,000 per day for frequent travellers, to bring it on par with cash payments, and there should be differential discount of fee for debit cards. According to the report, there is a need to enable customers to fix their own limits with regards to area of operation and activation for international use of bank cards. The committee's other proposals include a transition to chip-based electronic cards with photographs and recruitment of a chief customer service officer for grievance redressal in every bank. It also recommends submission of life certificate for pensioners and automatic updation of senior citizen status in any Core Banking Solution (CBS) branch. For better integration of banking services in the remote North-Eastern part of the country, the committee called for financial inclusion through branch expansions in those states. It also said there is a need to move more and more towards paperless fund transfers. The RBI has sought comments and feedbacks from the public and all stakeholders regarding the Damodaran committee's proposals by August 27. As part of its jurisdiction, the Committee on Customer Service in Banks looked into the system of grievance redressal mechanism prevalent in banks, its structure and efficacy. It was tasked with suggesting measures for expeditious resolution of complaints. The committee also looked into the functioning of Banking Ombudsman Scheme, besides the role of the Board of Directors of banks and the role of regulators in customer service matters.

https://www.financialexpress.com/news/block-your-atm-card-by-sms/826703/0