Permit mobile registration from any bank’s ATM: RBI

Analysing the fact of cellphones becoming a crucial part of banking, Reserve Bank of India (RBI) has made it mandatory for banks to permit customers mobile registration through any bank’s ATM.

RBI asks banks to permit mobile registration through any bank's ATM
RBI asks banks to permit mobile registration through any bank’s ATM

Reserve Bank has also asked banks not to insist the customers to visit only their home branch to get their mobile numbers registered or to have this facility for customers across branches.

Banks have also been asked to provide the facility of mobile number registration through internet banking.

Why mobile registration is important ?

SMS alert : Mobile number linking to bank accounts is important because it facilitates alert to customer for every transaction in his account and helps to prevent fraud.

OTPs : Mobile numbers are also used to send one-time passwords (OTPs) in transactions where the credit card is not present.

Banks also require online remittances to be authenticated with OTPs.

According to credit card companies, SMS alerts and OTPs substantially brought down frauds in banking.

Banks also require customers to register their mobile numbers to avail of services like ‘missed call banking’ and mobile banking.

A registered mobile number is a prerequisite for using a mobile banking application.

Earlier this month, the RBI had made it mandatory for banks to get customers registered for alerts for electronic banking transactions. This was part of its draft guidelines on limiting liability of customers in fraudulent electronic banking transactions. Under these guidelines, the longer the time taken to notify the bank, the higher will be the risk of loss to the customer. To facilitate early reporting, banks were asked to provide 24×7 access through multiple channels for reporting fraudulent transactions.

Until recently, banks had been insisting that customers visit their home branch for registering their mobile number. This turned out to be an impediment for those who had retained their bank account even after moving to different cities.

How to register mobile number through ATM ?

The mobile registration facility in an ATM is made available either in the main menu or under ‘other services’.

Since the directive was issued a few weeks ago, banks have brought on board more than 80% of the 2.22 lakh ATMs in the country. A few ATMs where remote updating is not possible still do not provide the service.

Leave a Reply

Your email address will not be published. Required fields are marked *