Scheduled Commercial Banks
23 of Banking Regulation Act, 1949 – Doorstep Banking
refer to our circular DBOD.No.BL.BC.86/22.01.001/2004-2005
dated April 30, 2005 on the above subject, in terms of which banks were advised
to formulate a scheme with the approval of their Boards, for providing services
at the premises of a customer and submit it to Reserve Bank for approval.
2. In order to ensure transparency in respect of the rights and obligations of
customers, uniformity in approach and to clearly delineate the risks involved,
it has been decided to lay down general principles and broad parameters to be
followed by banks while offering "doorstep" services to their customers,
Accordingly, banks may prepare a scheme for offering "doorstep" banking
services to their customers, with the approval of their Boards, in accordance
with the guidelines enclosed to this letter.
Attention of banks is also drawn to the incidence of circulation of forged notes,
particularly, high denomination notes, in the market. Banks are advised to take
suitable steps to educate their "Agents" to enable them to detect forged
and mutilated notes so as to avoid frauds and disputes with the customers.
Banks are further advised to take into account the various risks that may arise
on account of offering doorstep banking services to customers directly or through
agents and take effective steps to manage the same. Banks may specifically consider
prescribing cash limits for their agents and customers in this regard.
The operation of the scheme may also be reviewed by the Boards of banks on a half-yearly
basis, during the first year of its operation and subsequently on an annual basis.
for Doorstep Banking
Services to be offered
can offer the following banking services to their customers at their doorstep:
Corporate Customers/ Government Departments/ PSUs etc.
up of cash
Pick up of instruments
of cash against cheques received at the counter
Delivery of demand drafts
(b)Individual Customers/Natural persons:
up of cash
up of instruments
Delivery of demand drafts
Modalities of Delivery
banks engage the services of Agents for delivery of services, it should be ensured
that the policy approved by the Board lays down the broad principles for selection
of Agents and payment of fee/commission etc. Banks may refer to the guidelines
on Managing Risks and Code of Conduct in Outsourcing of Financial Services by
banks issued vide our circular DBOD
No.BP.40/21.04.158/2006-2007 dated November 3, 2006 and ensure that the principles
enumerated therein are complied with while offering Doorstep Banking services.
Cash collected from the customer should be acknowledged by issuing a receipt on
behalf of the bank;
collected from the customer should be credited to the customer’s account on the
same day or next working day, depending on the time of collection;
The customer should be informed of the date of credit by issuing a suitable advice.
Delivery of demand draft should be done by debit to the account on the basis of
requisition in writing/ cheque received and not against cash or instruments collected
at the doorstep;
Cash delivery services may be offered to the corporate clients/PSUs/departments
of Central and State Governments against receipt of cheque only at the branch
and not against telephonic request. No such facility, however, shall be made available
to individual customers;
may be ensured that the agreement entered into with the customer does not entail
any legal or financial liability on the bank for failure to offer doorstep services
under circumstances beyond its control. The services should be seen as a mere
extension of banking services offered at the branch and the liability of the bank
should be the same as if the transactions were conducted at the branch. The agreement
should not provide any right to the customer to claim the services at his doorstep.
if any, to be levied on the customer for doorstep services should be incorporated
in the policy approved by the Board and should form part of the agreement entered
into with the customer. The charges should be prominently indicated on brochures
offering doorstep services.
(i) Doorstep services should be offered to only those customers in whose case
proper KYC procedures, as laid down in our circular DBOD
No.AML. BC.58/14.01.001/2004-05 dated November 29, 2004 and subsequent circulars
on the subject have been followed;
The services should be offered at either the residence or office of the customer,
the address of which should be clearly and explicitly mentioned in the agreement.
(iii) The agreement/ contract with the customer shall clearly specify that the
bank will be responsible for the acts of omission and commission of its ‘agent’.
The "Scheme" should not be restricted to any particular client/customer
or class of customers.
Banks may keep in view the restrictions imposed by Section 10 (1) (b) (ii) (b)
of the Banking Regulation Act, 1949, while making payments for the services outsourced.
Redressal of Grievance
Banks should constitute an appropriate Grievance Redressal Machinery internally
for redressing complaints about services rendered by its ‘agents’. The name and
telephone number of the designated Grievance Redressal officer of the ‘bank’ should
be made available to the customers including on the bank’s website. The designated
officer should ensure that genuine grievances of customers are redressed promptly.
b) If a customer feels that his complaint has not been satisfactorily addressed,
he will have the option to approach the Office of the concerned Banking Ombudsman
for redressal of his grievance/s.