DBOD No. Comp.BC.14/07.03.29/2005-06
July 20, 2005
All Scheduled Commercial Banks
Internet Banking in India – Guidelines
Please refer to our circular DBOD
No.Comp.BC.130/07.03.23/2000-01 dated June 14, 2001 in terms of which banks
were advised to seek prior approval of Reserve Bank of India before offering
transactional services on the Internet. The position has since been reviewed
and banks are advised that while the offering of Internet Banking services will
continue to be governed by the provisions of the above circular, no prior approval
of the Reserve Bank of India will be required for offering Internet Banking
2. Banks should, however, ensure compliance
with the following conditions:
a. The Internet Banking policy has been approved
by the Bank's Board.
b. The policy fits into the bank's overall Information
Technology and Information Security policy and ensures confidentiality of records
and security systems.
c. The policy takes into account operational
d. The policy clearly lays down the procedure
to be followed in respect of 'Know Your Customer' requirements, and
e. The policy broadly meets the parameters laid
down in our above circular.
3. Please acknowledge receipt.
Chief General Manager