Response to RBI Discussion Paper on Disincentivisation of Cheques has finalized its first response to the RBI discussion paper on Disincentivisation of cheques released by RBI on 31st January 2013.

A Copy of the response is available here :

Public comments can be sent upto 28th February 2013 through email here:

Copy of the discussion paper is available here

Earlier posts at so far are available here:

1.  2  3  4  5.  6  7  8  9  10

I urge public to go through the notes and send their own comments to RBI.

It is to be noted that the discussion is aimed at withdrawing some banking facilities to people who are presently not on the Internet banking system. Such people may not even see the discussion note. So far only a few business news papers have carried the news about this proposal. Language news papers and TV media are yet to bring this to the notice of the public.

People who view this note should remember that I and you may not be very much adversely affected by the notification. But there are senior citizens, pensioners, villagers and many many small enterprises, traders, professionals etc who need to know what RBI is up to and how their current right to Bank with cash and cheque are being affected by the proposals.

I therefore request all of you to pass on this information to others who are not likely to have noticed this discussion papers.

Please inform consumer organizations, your friends in the press and ask them to highlight the issue.

If you know any parliamentarians, please draw their attention.

Remember that a similar attempt in UK was withdrawn after the public raised their objection. The Government of UK has given a public assurance that Cheques will be continued as long as customers want.

The issue here is not to discourage electronic banking. But today E-Banking has too many risks. Cyber Frauds are on the increase. US has provided statutory limitation of customer liability for cyber frauds at US$50. In India RBI has asked Banks to obtain insurance and bear the liability themselves. However in this discussion paper there is an attempt to put words in the mouth of RBI as if cyber fraud losses are to be borne by the customers. This is the mischief some of the Banks who have high incidence of Cyber frauds are playing on the general public.

There is a lot RBI needs to do to shore up E Banking security. Even the measures already suggested by them have been ignored by most Banks. There is a crisis of regulatory control for RBI against the Banks. The Damodaran Committee report on Customer Service which was customer friendly has not been notified. In its place this highly anti consumer proposal is being put up.

Advocates who are public spirited need to take up the issue through PIL in Supreme Court since the tenor of the discussion paper is against the basic character of Banking in law and is beyond the powers of RBI to tamper with.

Naavi will continue to post further clarifications and opinions on this matter on the website but what matters is action on the physical space. Please contribute your might to the same. This is a challenge of how an assault on physical space mounted from cyber space will be countered bu the community.


Print Friendly, PDF & Email

About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
This entry was posted in Bank, Cyber Crime, Cyber Law, Information Assurance, Netizen's Forum, Privacy, RBI, Uncategorized. Bookmark the permalink.

2 Responses to Response to RBI Discussion Paper on Disincentivisation of Cheques

  1. Mahesh says:

    Yes…agree with Naavi. Such a big change fraught with dangers(cyber crimes), will lead to chaos. “Aam Admi” will be severly hit. There should be an option for adoption for the public.
    eBanking should always be a parallel track to our conventional banking until some more time, in my opinion also.

  2. Mukesh Goel says:

    Yes, I also agree with Naavi. disincentivisation of cheques will create more problem for common men. Further it would be so early as so many people still not using banking opration for their business transactions, so first to promote the banking habits and facilitate the people and teach people about cyber crime then only you can take further step. It will be a disaster at this stage.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.