Mumbai: Consumers can look forward to a more secure and customer-friendly banking system with the RBI announcing several initiatives for protecting consumers such as tackling mis-selling, simplifying KYC norms to curb harassment, and cyber security and frauds which have been a cause for increasing concern.
Deputy governor S.S. Mundra at the post policy announcement press conference said there would be a banking supervision on a risk based approach for the entire banking system and over a period will be supervised for IT security and cyber security.
There would also be a special department set up to tackle cyber frauds. About 30 banks have been brought under supervision to tackle large scale frauds and there will be another model for smaller banks that will be brought under supervision.
For consumer protection, the RBI will also be reviewing the ombudsman scheme and adding two new offices. An internal ombudsman will also be put in place and its progress is being monitored, he said.
In the case of business correspondents Mr Mundra said a new framework is being designed. On startups, RBI said they have the potential to play a significant role in economic growth and job creation by spurring innovation and injecting competition.
Considering the available funding channels from overseas for startups the RBI in consultation with the government will allow such entities to raise external commercial borrowings upto $3 million or equivalent per fiscal either in rupees or in any convertible foreign currency or a combination of both. The guidelines for ECBs will be issued by the end of October. Further to protect the soundness of the financial institutions it has been decided to bring 4 institutions under framework.
