RBI/2007-2008/188
DBOD
Comp BC No. 5853 /07.03.29/2007-08 November
15, 2007 All
Scheduled Commercial Banks Dear
Sir, Internet Banking
– Internet based Platforms for dealing in Rupee Vostro Accounts
Please refer to our circulars DBOD
Comp BC No. 130/07.03.23/2000-01 dated June 14, 2001 and DBOD
Comp BC No. 1658/07.03.29/2006-07 dated August 22, 2006 containing guidelines
for Internet Banking in India. 2.
On a review, it has been decided that banks may permit internet based operations
on Rupee Vostro Accounts maintained by exchange houses or banks outside India
with them, provided the banks in India ensure that the software will prevent any
unauthorised operation. The internet based operations on vostro accounts are being
permitted subject to the conditions that: (i)
Banks will remain responsible for secrecy, confidentiality and integrity of data.
(ii)
Banks should strictly comply with FEMA rules/regulations issued in connection
with operations/maintenance of vostro accounts in India.
(iii)
Banks should strictly adhere to KYC and AML standards and procedures relating
to correspondent banking/exchange houses. 3.
In all other matters relating to internet banking services, banks may continue
to be guided by the instructions contained in our circulars DBOD
Comp BC No. 130/07.03.23/ 2000-01 dated June 14, 2001 and DBOD
Comp BC No. 14/07.03.29/2005-06 dated July 20, 2005 respectively on internet
banking. 4.
Please acknowledge receipt.
Yours faithfully,
(Vinay Baijal)
Chief General
Manager |