Section 23 of Banking Regulation Act, 1949 – Mobile ATM’s

Section 23 of Banking Regulation Act, 1949 –
Mobile ATM’s

Yesterday, Reserve Bank of India, DBOD, Vide Notification No.RBI/2010-11/132
DBOD.No. BL.BC.27/22.01.001/2010-11,dt.July 23, 2010, addressed to All Scheduled Commercial Banks (excluding RRBs), has liberalized the rules for Opening of Mobile Branches and Mobile ATM’s.

The Highlights are:

a) Notification pertains to Section 23 of Banking Regulation Act, 1949 –
Mobile ATMs

b)    Decided to grant general permission to Scheduled commercial banks (other than RRBs) to operationalise Mobile ATMs at centres / places identified by them, without prior permission from the Reserve Bank, subject to reporting.

c)     Other conditions stipulated in RBI circular DBOD.No.BL.BC.137/22.01.001/2008-09 dated June 12, 2009 remain unchanged.

d)    The details of the mobile branches and mobile ATMs should be reported to Reserve Bank of India.

The following are the facilities which can be provided through Mobile  ATMs

1.            Deposits/Withdrawals;

2.            Personal Identification Number (PIN) changes

3.            Requisition for cheque books

4.            Statement of accounts

5.            Balance enquiry

6.            Inter account transfer within the bank between accounts of same customer or different customers of the bank at the same center or different centers within the country

7.            Inter Bank Funds Transfer – Transfer of Funds between the bank’s customers and customers of other banks.

8.            Mail facility for sending written communication to the bank

9.            Utility payments like Electricity bill, Telephone bill etc.;

10.          Issue of railway tickets

11.          Product Information

The above list is exhaustive, and if all the above Services are provided at the Mobile ATM’s, it will be a boon for the unbanked population. At the same time, this will help banks to shore up CASA Deposits. Yes, do not underestimate the power of rural Indians to save.

For Mobile ATM’s, to function smoothly a seamless interaction between the Banks IT Centre, and On-Site Staff, is essential.

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