Digital banking cannot be made mandatory to access other services: RBI

The Reserve Bank of India (RBI) on Friday issued its final instructions on digital banking channels, stating that banks must obtain explicit consent from customers before providing digital banking services.

- SUBRATA PANDA

The central bank further said that the lenders cannot make it mandatory for customers to opt for any digital banking channel in order to avail other facilities, such as debit cards.

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

However, banks can continue to obtain and record customers’ mobile numbers to send transaction alerts and meet KYC (know your customer) requirements at the time of account opening.

Additionally, the central bank has allowed banks to put in place appropriate risk mitigation measures — such as transaction limits, transaction velocity limits, and fraud checks — in line with their internal policies based on their risk perception.