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The Reserve Bank of India, through notification no RBI/2022-23/135 DoR.AUT.REC.81/24.01.001/2022-23, dated November 01st 2022, has issued fresh guidelines for offering internet banking facilities by the Regional Rural Banks (RRBs). The guidelines specifically mention the eligibility criteria and all the amendments made to the instructions issued on November 19th 2015, vide circular no. DBR.RRB.BC. No.59/31.01.001/2015- 16 on Internet banking facility for customers of Regional Rural banks. These amendments came into force on the issuance of the notification on November 01st 2022, by the Reserve bank of India, and apply to all the Regional rural banks operating in the country.
Released on November 19th 2015, these guidelines aimed at presenting the internet banking facilities to the customers of these banks and spreading digital banking practices in the country’s rural regions. The guidelines have segregated the internet facilities into the following parts;
RRBs that have implemented the core banking solutions and migrated to the Internet Protocol Version 6 can provide their customers with a View-only facility in the Internet Banking Facility. The two-factor authentication with OTP is mandatorily required for view only internet banking facilities.
The view-only service will strictly cover only non-transactional services like balance viewing, balance enquiry, account statement download, and chequebook requests, it does not include any online fund transfers.
Apart from the CBS and IPv6, the banks offering transactional services on internet banking must submit the application to the RBI with the following conditions:
The banks fulfilling the above-mentioned criteria can submit an application in the prescribed format to the regional RBI office through NABARD with the documents specified in the notification.
An Internet banking policy by RRBs must be formulated with the Board’s approval keeping in mind the following pointers:
The Reserve Bank of India, through a notification on November 01st 2022, has revised the eligibility criteria to provide Internet banking facilities by RRBs with a transactional facility to its customers. The changes made to the criteria are elucidated below:
With an aim to promote digital banking and technology-based products in the country, the Reserve bank of India has eased the requirements for setting up a transaction-based digital banking framework in the country. The recent circular is the apex bank’s way of boosting the use of technology so that online banking can be provided to millions of users across many semi-urban and rural areas of the country. The notable amendments in the form of net worth requirement and decreased NPA percentage shows the stance of the apex bank and the government in promoting these virtual banking services in the country. This step of providing Internet Banking facility by RRBs to its customers will provide a boost to small business owners and MSMEs to flourish in the digital era.NT135BB3F355F07844CFFA33AAA940D290576
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