What changed
RBI reiterated that banks must employ only Direct Marketing Agents (DMAs) and Direct Selling Agents (DSAs) who are registered as telemarketers with DoT. This follows a Supreme Court direction in Harsh Pathak vs. Union of India (July 31, 2008) barring unregistered telemarketers from operating.
What it means for you
Banks must vet their DMAs/DSAs to ensure DoT registration, or face regulatory action for violating the Supreme Court order. This tightens compliance around unsolicited commercial communications and the National Do Not Call (NDNC) registry.
What you must do
- Verify that all DMAs/DSAs engaged by your bank are registered as telemarketers with DoT.
- Discontinue any telemarketing arrangements with unregistered entities immediately.
- Maintain documentation of DoT registration for each telemarketer used.
- Review and update your vendor onboarding processes to include this compliance check.
Who it affects
All commercial banks (excluding RRBs), Direct Marketing Agents (DMAs), Direct Selling Agents (DSAs), Telemarketing firms engaged by banks
What is the basis for this RBI directive?
It follows a Supreme Court direction in Harsh Pathak vs. Union of India (July 31, 2008) that unregistered telemarketers must not operate, as communicated by TRAI to RBI.
What happens if my bank uses an unregistered telemarketer?
RBI states that employing telemarketers not registered with DoT will be treated as a violation of the Supreme Court's direction, potentially leading to regulatory action.
Does this apply to all types of banks?
Yes, it applies to all commercial banks except Regional Rural Banks (RRBs), as specified in the circular.