Naavi.org 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 :
http://www.naavi.org/cl_editorial_13/rbi_discussion_cheques_ds.pdf
Public comments can be sent upto 28th February 2013 through email here: chequeusage@rbi.org.in
Copy of the discussion paper is available here
Earlier posts at Naavi.org so far are available here:
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Remember that a similar attempt in UK was withdrawn after the public raised their objection.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.
Naavi
