Now, banks will serve you at your doorstep

RBI Allows Banks To Hire Agents To Speed Up Doorstep Banking Services
BANK customers can now look forward to home delivery of banking services, with the central bank allowing banks to employ agents to extend doorstep banking services. Banks can pick up cash and cheques for individuals and corporate customers. They can also deliver cash against cheques received across the counter to corporates and government departments. Where banks do employ agents, they have to certify in writing that they are taking responsibility for their agents’ actions. In its guidelines issued on Wednesday, RBI said that where banks engage agents for delivery of services, they should have a policy approved by their boards which lays down broad principles for selection of agents and payment of commission. Banks will also have to comply with RBI directives on outsourcing services. Bankers say that doorstep banking can complement internet banking and further reduce pressure on branches. Public sector banks may, however, not be able to exploit this facility as much private and foreign banks due to union opposition to outsourcing of services. This move by RBI will give a big boost to rural banking plans of banks such as ICICI Bank which was looking at doorstep banking as one of the models to tap the rural market. Foreign banks, which cannot freely expand branch network, can also use this route to expand their business.The guidelines also prescribe service levels in terms of the time for delivery. According to RBI, cash collected from a customer should be acknowledged by issuing a receipt on behalf of the bank; and credited to the customer’s account on the same or next working day depending on the time of collection.As part of risk-management prescriptions, RBI said that the cash delivery services could be offered against receipt of cheque only at the branch and not against telephonic request. For individuals, even this facility will not be available. Also, banks can provide door delivery of demand drafts only if they have received a requisition in advance and the amount has been debited to the customer’s account. If a bank decides to charge extra for doorstep services, charges have to be first cleared by the board of the bank. RBI has also barred banks from extending this service to any address other than what is mentioned in the agreement between banks and customers.
courtesy:economictimes
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