RBI Draft: Digital Banking Cannot Be Forced on Customers
Why in the news
The RBI drafted norms so that customers, not banks, decide whether to use online or mobile banking.
Key facts
- Banks must keep consent records for audit.
- Customers must be told that SMS or email alerts go to registered contacts.
- Protects senior citizens and non-tech-savvy users from forced migration.
Significance
- Customer choice, accountability, data privacy.
- Less mis-selling and more inclusive banking.
- Banks may still keep KYC contact details, but must not treat them as digital banking consent.
Exam angle
- Draft title: Digital Banking Channels Authorisation.
- Core rule: no mandatory digital opt-in.