What changed
RBI replaced the earlier case-by-case approval process with a standardized framework of general principles and broad parameters for doorstep banking. Banks can now prepare their own Board-approved schemes following these guidelines, instead of submitting individual schemes for RBI approval.
What it means for you
Banks gain operational flexibility to design doorstep banking services under a clear regulatory framework, reducing approval delays. However, they must manage risks like forged notes and cash limits, and ensure transparency in customer agreements. The guidelines also mandate half-yearly Board reviews in the first year, increasing compliance oversight.
What you must do
- Prepare a doorstep banking scheme with Board approval following the enclosed guidelines.
- Educate agents to detect forged and mutilated notes to prevent fraud.
- Set cash limits for agents and customers and manage operational risks.
- Review scheme operations half-yearly in the first year, then annually.
- Ensure customer agreements state bank liability is the same as if transactions were conducted at the branch, not limited.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Corporate customers, government departments, PSUs, Individual customers (natural persons), Bank agents and employees handling doorstep services
Can we offer cash delivery to individual customers?
No, cash delivery services are only for corporate clients, PSUs, and government departments against a cheque received at the branch, not for individual customers.
What are the key risk management requirements?
Banks must ensure agreements limit liability to branch-level responsibility, set cash limits, and train agents to detect forged notes. The scheme must be reviewed by the Board half-yearly in the first year.
Do we need RBI approval for our doorstep banking scheme?
No, the 2007 circular replaces prior approval with a Board-approved scheme following the guidelines. However, banks must comply with outsourcing risk guidelines from November 2006.