The Reserve Bank of India has published a host of recommendations for improving bank customer services, including the establishment of a shared Know-Your Customer database, the introduction of multi-factor authentication for Internet transactions and a nationwide switch to Chip and PIN-based EMV cards.
The recommendations come from an RBI-convened 'Committee on Customer Services in Banks', chaired by the former chairman of the Securities and Exchange Board of India, Shri M. Damodaran.
On Internet banking, it suggests that banks implement multi-factor authentication and establish sophisticated pattern recognition systems to detect suspect transactions.
To clamp down on card fraud, it calls for a move to EMV-based chip cards and suggests the introduction of SMS fraud alerts to warn customers of unusual spending activity. It also says the onus on proving fraud in disputed ATM transactions should rest with the bank, and not the customer.
To ease account opening procedures, the Committee says the Indian Banks' Association (IBA) should consider setting up a trusted third party KYC data bank which can be shared and hosted under the UID number of the customer.
The RBI is calling for feedback on the report's recommendations by the end of the month.
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