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RBI dispatches Mani application to challenge money notes

RBI dispatches Mani application to challenge money notes

MUMBAI: Large banks had an emergency meeting on Monday evening to explore ways to lend a helping hand to businesses hit by the Covid-19 outbreak. At the hurriedly called videoconference attended by close to 20 senior bankers, there were discussions on possible credit lines and special benefits that could be given to certain sectors such as transportation, travel and tourism, exports and MSMEs. The meeting was called by the Indian Banks’ Association, the industry lobby. “Banks are collating information, and IBA will then forward the recommendations to RBI,” said IBA chief executive Sunil Mehta. He said IBA and member banks are planning to come out with advisories to create customer awareness and promote contact-less banking. IBA will also assure clients that institutions are putting in place business continuity plans, and encourage banks to have flexible working hours. Trade Bodies Reach Out to Banks, RBI Many trade bodies have reached out to lenders as well as the banking regulator, drawing attention to the plight of industries — particularly those dependent on imported raw materials and having exposure to markets such as the US, Europe, Middle East and China. “Several businesses are stuck… there are so many cases where letters of credit have been opened, payments made, but shipments have not arrived,” said another banker. “Some of the banks felt that the present circumstances may call for regulatory forbearance as many borrowers could find it difficult to service loans in time,” said the person. Some of the trade associations are pleading for waiver of interest on packing (or, pre-shipment) and post-shipment credit for a six-month period beginning January 1, 2020, and extension of packing credit availed for manufacturing or procurement of goods meant for exports by at least 180 days. In most cases, an exporter is required to receive payments within 180 days. After dispatching goods to foreign buyers, an exporter hands over shipping documents to his bank. The exporter’s bank (wherever post-shipment credit limits have been put in place) pays the shipment amount to the exporter after deducting bill discounting. The shipment documents are then sent to the foreign buyer’s bank by the exporter’s bank. “Where the amount is payable upfront and no credit is allowed by the exporter to foreign importer, the foreign bank will collect the amount and release the shipping documents to the importer. The buyer’s bank will then remit the amount to the exporter’s bank. The entire cycle normally takes 90-180 days. Sometimes, if the local exporter does not have credit limits with the local bank or if the limit is full and no more room is available to discounting more export bills, the exporter will ask his bank to send the shipping documents on ‘collection’ basis. Here, the exporter receives the money only after the foreign buyer has paid. In such cases, the entire credit risk on foreign importer is borne by the local exporter unless ECGC (Export Credit Guarantee Corporation of India) has guaranteed the amount. The period of 180 days should be extended by the RBI as this is a force majeure situation,” said veteran banker PH Ravikumar. A note from the China Banking Association — circulated among Indian lenders — said banks in China have taken steps such as waiver of transfer fees for donations or remittances, providing 24X7 services through e-platforms, rescheduling repayment plans for affected lenders, disinfecting brick-and-mortar branches and bank notes, besides providing regular updates. In many cases, Indian banks have told borrowers that extending pre-shipment or post-shipment credit facilities in the current situation would require regulatory approval.

“Daffodil Software is an early adopter of Artificial Intelligence technology which puts it into the leadership position to build an app like MANI. Being a government of India initiative, this was a key project for us as it was going to empower eight million visually impaired people across India. For people with hearing and visual impairments, the app has predefined vibrations for different denominations of banknotes. For its technical and functional advances, the app has received an applaudable response from the users with 3,50,000 plus downloads in the time span of just one month”, said Yogesh Agarwal (CEO, Daffodil Software) regarding the success of the MANI app.

The banks often show the entries in depositors' passbooks / statements of accounts, as "by clearing" or "by cheque". Further, it is observed that in the case of Electronic Clearing System (ECS) and RBI Electronic Fund Transfer (RBIEFT), banks generally do not provide any details even though brief particulars of the remittance are provided by the receiving bank. In some cases, computerized entries use codes which just cannot be deciphered. With a view to avoiding inconvenience to depositors, banks should avoid such inscrutable entries in passbooks / statement of accounts and ensure that brief, intelligible particulars are invariably entered in passbooks / statement of account.

Banks were mandated to send online alerts to the cardholders for all Card Not Present (CNP) transactions for the value of ₹ 5000/- and above. In view of the incidents of unauthorized / fraudulent withdrawals at ATMs that came to the notice of RBI, banks were advised to put in place, latest by June 30, 2011, a system of online alerts for all types of transactions irrespective of the amount, involving usage of cards at various channels. This measure is expected to encourage further usage of cards at various delivery channels. Banks should provide easier methods (like SMS) for the customer to block his card and get a confirmation to that effect after blocking the card.

The detailed information as indicated in Para (E) of Annex II may also be made available on the bank’s web-site. Banks should adhere to the broad guidelines relating to dating of material, legibility, etc., while placing the same on their websites. In this context, banks are also advised to ensure that the customers are able to easily access the relevant information from the Home Page of the bank’s web-sites. Further, there are certain information relating to service charges and fee and grievance redressal that are to be posted compulsorily on the websites of the bank. Reserve Bank is providing a link to the websites of banks so that customers can also have access to the information through RBI’s website.

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