The Reserve Bank of India (RBI) has directed banks to use the ‘1600’ phone number series for calling customers regarding transactions.
For promotional purposes, banks and other regulated entities should use the ‘140’ phone number series. This move is aimed at reducing the risk of financial fraud.
Actions to Improve Customer Data and Prevent Fraud
RBI believes this change will help curb fraudulent activities. In addition, the central bank has instructed banks and regulated entities to monitor their customer databases and remove outdated or unnecessary data.
A circular issued by the RBI emphasized the need for banks to update customers’ registered mobile numbers after proper verification.
Banks are also required to monitor accounts linked to canceled mobile numbers to prevent potential fraud.
RBI has set a deadline for these actions to be completed by March 31, 2025. While digital transactions offer convenience to customers, they also increase the risk of fraud, making it a serious concern for the RBI.
Nominee Facility for Bank Accounts and Lockers
In another directive, the RBI has asked all banks to ensure that nominees are appointed for both existing and new accounts, as well as lockers.
Many accounts currently lack a nominee, and this facility helps make the settlement process easier for the family members of the account holder in case of their death.
RBI has suggested that banks update their account opening forms to include the nomination option.
Banks and Non-Banking Financial Companies (NBFCs) are also encouraged to launch awareness campaigns to ensure all accounts have a nominee.
