Door-step banking to become a reality soon

Following several requests received from the government departments like Railways, etc. for making available banking services — including collection of cash at their premises and representations from banks — RBI has proposed that a scheme for providing services at the premises of a customer within the framework of Section 23 of Banking Regulation Act, 1949, may be formulated by banks with the approval of their Boards and submitted to RBI for approval.

This step will further revolutionise the banking sector in India. Banks are already offering various services like internet banking, phone banking and ATMs. ‘‘A customer can see his account through internet from whereever he wants. If banks implement the latest move, a customer doesn’t need to go to a bank branch,’’ said a banker.

RBI had banned door-step banking earlier. As per a circular issued in May 24, 1983, banks were advised not to extend any banking facilities at the premises of their customers, without obtaining the required permission from the central bank.

Banking circles expect banks to formulate a scheme in line with the latest RBI directive. ‘‘Banking is very competitive in India. It remains to be seen what types of services will be available through the door-step banking. I hope they will also allow withdrawal of cash and even opening of FD accounts and making pay orders,’’ said a corporate executive.

Door-step banking is expected to be a bonanza for big customers like corporates, government departments and institutions.

Meanwhile, RBI has said, ‘‘In the interregnum, in order that Central and state government departments are not inconvenienced, agency banks may continue to lift cash and collect credit instruments etc. from the premises of Central and state government departments.’’