What changed
RBI observed that RRBs, though connected to NEFT via sponsor banks, have low awareness about the facility, especially for walk-in customers who can deposit cash for transfers. The circular directs RRBs to take concrete steps to educate both staff and the public on NEFT benefits.
What it means for you
RRBs must now proactively train staff and run public awareness campaigns on NEFT, including for cash-based remittances by non-account holders. This could increase transaction volumes and fee income for RRBs, but also requires investment in training and outreach. Banks should align with DPSS guidelines to avoid compliance gaps.
What you must do
- Conduct staff training sessions on NEFT features, especially for walk-in cash remittances.
- Display NEFT awareness materials (posters, leaflets) at all branches and in local languages.
- Leverage RBI's DPSS FAQs and guidelines to create simple customer-facing communication.
- Report action taken to the respective RBI Regional Office as instructed.
Who it affects
Regional Rural Banks (RRBs), RRB branch staff and management, Walk-in customers without bank accounts, Sponsor banks of RRBs
Can a person without a bank account use NEFT at an RRB?
Yes, RBI allows walk-in customers to deposit cash up to a certain limit at NEFT-enabled branches and transfer funds to any account in the NEFT network.
What resources should RRBs use for awareness?
RRBs should refer to the guidelines and FAQs issued by RBI's Department of Payment and Settlement Systems (DPSS), available on the RBI website.
What is the deadline for compliance?
The circular does not specify a deadline, but RRBs must take immediate action and communicate the steps taken to their respective RBI Regional Offices.