RBI to tighten digital banking norms, proposes ban on display of third-party products and services

The draft said banks shall put in place appropriate risk mitigation measures in accordance with their policies, like transaction limit on a daily, weekly and monthly basis, transaction velocity limits, and fraud checks depending on their risk perception.

It further said banks should not make it mandatory for customers to opt for any digital banking channel to avail any other facility like debit cards.

“While it may be more convenient for customers to opt for some services together (like virtual access to card controls), the choice to apply for digital banking facilities shall lie solely with the customer,” the draft said.

Also, banks should obtain explicit consent from the customer for providing digital banking services, which may be duly recorded/documented, it said. “Banks shall require prior approval of the Reserve Bank for launching transactional banking facility,” the draft said.

Subject to fulfillment of the prudential eligibility criteria, banks may apply to the respective RBI regional office for launching transactional banking facility, along with a board resolution.

They will also have to provide supporting documents, including related to net worth as per minimum regulatory requirement or Rs 50 crore, whichever is higher, as on March 31 of the immediately preceding financial year.