RBI admits credit card problems
RBI mulls guidelines on outsourcing of banking activity
Mumbai, May 29: Reserve Bank of India is considering issuing guidelines on outsourcing of banking activities to improve regulatory oversight for risk management of this segment.
The central bank was internally discussing on regulatory guidelines on outsourcing, RBI Deputy Governor Shyamala Gopnath told reporters today on the sidelines of a seminar on retail banking organised by Indian Bank's Association here.
Commercial banks are resorting to outsourcing for reducing costs and increase efficiency. This has potential to transfer to third party which is outside regulator's ambit, she said.
The banks should be careful about outsourcing activities which are critical to banking operations, she said.
Referring to services to the retail customers, RBI Deputy Governor said the focus should not be just on the lending activity but also on the concern of depositors and provide facilities to customers who do not want Internet banking but are comfortable with branch banking.
The retail home loan lending has grown considerably. The non-performing assets of this segment are small yet as a matter of caution, RBI has raised risk weightage for home loans, she said adding as a matter of prudence, bank should carry out stress testing of balance sheet for movement in real estate prices.
On the credit cards, she said RBI has been receiving a number of complaints regarding various undesirable practices by credit card issuing institutions and their agents.
The RBI was considering to bring credit card disputes within the ambit of the banking ombudsman scheme.
posted by Superfly at 9:50 AM
1 Comments:
Hi,
It is heartening to note that the RBI is considering to do something about credit card menace. Now-a-days misusing the credit card has become so easy in the merchant establishments. The merchants seldom look at the signature panel of the cards, let alone verifying the signature on the chargeslips. When complained to the bank, they keep mum. A hapless customer who happens to lose his card and transactions happen before he realises it, he is just left high and dry.
I was a victim of such mis-use. The signature on the various retrieved chargeslips are so glaringly different that it was evident that the merchant has not done the primary signature verification. When complained to the forum on the deficiency of service on part of the bank (since merchants are a part of the banks credit card system), the forum dismissed the case. I am going on an appeal. Anybody with similar experiences? Letz share the experiences. You may contact me on ksmanjunatha@hotmail.com
Thanks.
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