RBI planning to simplify Banking for common man
Although the banking system has evolved and technology is acting as an enabler, there are many who still find banking to be a tedious task with copious paper work involved and authentications required. But now, the Reserve Bank of India (RBI) has proposed a slew of measures which could actually simplify banking for you.
Primarily the central bank intends to simplify the stringent Know-Your-Customer norms prevailing at present, which could make banking easy for the common man. "It is proposed to review the existing KYC norms for simplifying them within the provisions of the Prevention of Money Laundering Act and international standards," RBI said in its second quarter policy review. The central bank also intends to launch a pilot project, using "Aadhar" data, which could be used to authenticate banking transactions at ATMs and merchant terminals.
Discontinuation of cheque system
Also with some countries such as Britain, moving away towards discontinuation of cheque system, the central bank has decided to prepare a discussion paper on dis-incentivising issuance and usage of cheques and place it for public comments by this December. At present, the central bank intends to nationally role out it "cheque truncation" system, wherein flow of the physical cheque issued by a drawer to the drawee branch, will be stopped in the truncation process by sending an electronic image of the cheque to the drawee bank (along with the relevant information like the MICR fields, date of presentation, presenting banks etc.).
if the RBI is indeed successful to put in effect the aforesaid reforms it could deepen the banking system, as banking could be made easy for the common man. Linking "Aadhar" data to banking transactions at ATMs and merchant terminals, could lead to fewer authentications processes, thereby facilitating customers to transact with ease. Likewise, cheque truncations could speedup up collection of cheques and therefore enhance better service to customers and reduce the scope of clearing related frauds and also minimise cost of collection of cheques.
Now Health Insurers may indicate your renewal premium in Advance
As consumers we are often price conscious; and this trait is even followed while insuring own health. While buying a health insurance policy, many are sensitive to the price they pay for insuring (i.e. the premium) and often take a decision considering that to be paramount. Thus when we find the insurance company increasing the premium erratically, we find it rather discomforting and express annoyance. Many policyholders have in the past accused health insurance companies of hiking premiums manifold at the time of renewal without offering any explanation for the revision.
But now to crack the whip, the insurance regulator - the Insurance Regulatory and Development Authority of India (IRDA) is taking coherent stance in line with this price sensitive behaviour, whereby it has asked health insurance companies to indicate premium to be paid by the policyholder in the first five years while filing new products for its approval.
Best Regards
Prakash Nair
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