What changed
RBI issued a circular requiring primary urban co-operative banks to provide detailed remitter information in passbooks, pass sheets, or account statements for credits received via NEFT, NECS, or ECS. This follows complaints about incomplete details that made it hard for customers to trace credit sources.
What it means for you
Banks must update their passbook printing and statement generation systems to include remitter details for electronic credits. This enhances transparency and reduces customer confusion, especially when multiple credits hit an account. Non-compliance could lead to regulatory action under the Payment and Settlement Systems Act, 2007.
What you must do
- Update passbook/statement templates to include remitter name and credit source for NEFT, NECS, and ECS transactions.
- Ensure IT systems capture and transmit remitter details from payment systems to customer records.
- Train branch staff to handle customer queries about new passbook entries.
- Complete all system changes by January 1, 2011, as per RBI deadline.
Who it affects
Primary Urban Co-operative Banks, Customers using NEFT, NECS, or ECS for credits, Bank IT and operations teams
What specific details must be shown on passbooks for these credits?
The circular references a separate DPSS circular for exact information, but the key requirement is remitter details and credit source to help customers identify the origin of funds.
Does this apply to all types of electronic credits?
Yes, the circular specifically mentions NEFT, NECS, and ECS credits. Other electronic payment methods may be covered if similar issues arise.
What happens if we don't comply by the deadline?
The instructions are issued under the Payment and Settlement Systems Act, 2007, so non-compliance could invite regulatory action, including penalties.