Why go to the bank? Let the
bank come to you. The concept of doorstep banking is based on this very
premise. In fact, with hectic schedules and time constraints, value of time is
being increasingly felt and this is believed to the increasing the use of doorstep
banking in India as well as in some other parts of the world, including the US.
And seeing the opportunities
galore, banks of all hues – ranging from HSBC to ABN Amro and UTI Bank to DCB,
and even public sector banks such as State Bank and Central Bank of India – are
jumping on the bandwagon with their latest offerings.
Banks can pick up cash and
cheques for individuals and corporate customers. They can also deliver cash
against cheques received across the counter to corporate’s and government
departments. Where banks do employ agents, they are taking responsibility for
their agents actions.
Bankers say that doorstep
banking can complement internet banking and further reduce pressure on
branches.
The scope of home banking
includes other services as well ranging from courier pick-ups to opening a new
account and even getting due date reminder alerts.
RBI issues guidelines
In 2007, The Reserve Bank of
India permitted banks to deliver cash at the customer’s doorstep on request
received over phone or Internet.
At the time, it had been decided
to permit banks to deliver cash and drafts at the doorstep of customers either
against cheques received at the counter or requests received through any secure
convenient channel such as phone or Internet banking.
Earlier, the facility of
doorstep delivery of cash/draft was available only to corporate customers
including public sector undertakings and departments of Central and state
governments. The central bank has allowed bankers to fix their own cash limit
for “doorstep” banking and also clarified that the customer cannot claim any
right for the service.
The RBI has allowed banks to
deliver cash/draft either through their own employee or an agent. It has also
asked the banks to train their agents to identify forged and mutilated notes to
prevent misuse of the facility. Bankers have been given the freedom to fix
their own service charges for offering doorstep services.
As per the guidelines, banks
are required to issue acknowledgement receipts and credit the cash collected
from the customer on the same day or the next working day.
The guidelines, however do not
permit banks to issue demand drafts against cash received from the consumer’s
doorstep. Banks have been allowed to issue drafts on the basis of requisition
in writing or on receipt of cheque.
The RBI had in February allowed
banks to pick up cash and other instruments from residential or official
premises of all customers, including individuals. The central bank has also
asked the bankers to review the doorstep banking scheme on a half-yearly basis
in the first year of its operations and annually thereafter.
The RBI has asked banks to
constitute an appropriate grievance redressal machinery for redressing
complaints on the services being rendered by their agents.
Debit and credit card
transactions
Thanks to doorstep banking
several organisations have started letting retailers carry a credit card swipe
machine to a customer’s doorstep so that they can pay with a swipe of card. This,
a number of people say is the ideal way to carry out transactions, given the
amount sent by the RBI every year in printing notes. The Reserve Bank of India
and the Centre are currently in talks to make plastic money transactions more
common, so that the annual budget used in printing currency notes is
considerably reduced.
Benefits of doorstep banking
- No queuing at the branch, bank at your doorstep
- Dedicated counter agencies for cheque pick-up
- Dedicated CIT agents for cash pick up & delivery secured by a comprehensive insurance cover
- Multiple verifications and identification process to ensure security
- Reduced risk of carrying large sum of cash to or from the branch
- To help identification, the list or agency personnel is shared with you
- To confirm identification, you can check photo the id proof of agency personnel