|
RBI/2006-07/112
DBOD No. Comp. BC. 1658 /07.23.29/2006-07
August 22, 2006
All Scheduled Commercial Banks
Dear Sir
Internet Banking – Internet based platforms for dealing in Foreign
Exchange
Please refer to our circular DBOD.
COMP. BC. No. 130/07.03.23/ 2000-01 dated June 14, 2001 that sets out the
guidelines for banks on Internet Banking in India. In terms of paragraph III.3
of the circular, the Internet banking services allowed to be offered by banks
to residents of India should only include local currency products. A number
of banks have been requesting us for permission to offer Internet based foreign
exchange services, in addition to local currency products, on Internet based
platforms.
2. On a review it has been decided that banks
may be permitted to offer Internet based foreign exchange services, for permitted
underlying transactions, in addition to the local currency products already
allowed to be offered on Internet based platforms, subject to the following
terms and conditions:
(i) Banks will remain responsible for secrecy,
confidentiality and integrity of data.
(ii) The data relating to Indian operations will be
kept segregated.
(iii) The data will be made available to RBI inspection
/ audit as and when called for.
(iv) The services offered through Internet, for banks'
customers on an Internet based platform for dealing in foreign exchange, should
allow only reporting and initiation of foreign exchange related transactions,
with the actual trade transactions being permitted only after verification of
physical documents.
(v) Banks should comply with FEMA regulations in respect
of instructions involving cross-border transactions.
3. In all other matters relating to Internet
banking services banks may continue to be guided by the instructions contained
in our circular DBOD. COMP. BC. No. 130/07.03.23/ 2001-01 dated June 14, 2001
on Internet Banking.
Yours faithfully
(Prashant Saran)
Chief General Manager-in-Charge
|