Legal Question in Banking Law in India

My son (PRESENTLY ABROAD) has a Savings Bank A/C at ICICI

bank Hyderabad, Madhapur Branch. He has been recently (on 05/04/2012)

duped to the tune of Rs 50000 due to complete in alert Security System

While checking SMS messages in his mobile in the early morning

of 06/04/2012 it is seen that two messages have from ICICI Bank to his

mobile as follows

1) From LM-ICICIB received at 23-47 pm on 05/04/12 which reads

You�re a/c no xxooooxx8392 is debited for Rs 50000 on 05-04-12

23:47 and a/c of CHANDRASEKHAR REDDY has been credited (IMPS Ref

No-2009623134143)

2) From TD-ICICIB at 23-50 pm on 05-04-12 which reads you�re a/c no

xxxxxx8392 is debited with INR 50006.00 on 05 Apr .Inf:

MMT*Ref2009623134143xxxxxx.Your total available ban[lance is INR

27286.94

The messages were checked in the early morning of 06/04/2012

PLEASE GO THROUGH THE FOLLOWING TEXT

1) Actually he has never opted for IMPS. We were completely

unaware of such a new system. His A/C was opened in that branch in end

2007.IMPS was started in August, 2010, publicly launched by Sm

S.Gopinath (Dy Governor, RBI) on 22/11/2010

2) No registration for availing the IMPS service was OPTED BY my son,

neither the bank has intimated the customer anything about it WHICH IS

MANDATORY AS PER RBI and National Payment Corpn regulations and

guidelines (which is as follows)

A) Banks should have a system of registration before commencing

Mobile Based Payment

B) Banks should put in place a system of document based registration

C) The sender will have to register with the bank to get a 7 digit

MMID (Mobile Money Identifier)

CAN THE BANK GIVE ANY PROOF THAT THE REGISTRATION WAS DONE BY

MY SON FOR THIS SERVICE.MOREOVER AS PER ICICI BANK - The availability

/non availability of a particular service shall be communicated to the

user through email or in writing by ICICI Bank(NOT DONE)

3) Registration process for availing IMPS service may vary from bank

to bank, But Registration is a must. Even ICICI Bank has a procedure.

Whether ICICI Bank can give any proof that Regulators i e RBI/NPCI has

given relaxation to ICICI bank in this regard that CUSTOMER NEED NOT

BE INTIMATED AND BANK CAN DO ANYTHING AT THEIR SWEET WILL

4) During Mail Correspondence with the Bank Service Quality Department

it has been verbally communicated by Sm Sreelatha Viruchapa that those

who are registered for Basic Mobile Facilty ((where only information

like balance enquiry, SMS alert for credit-debit etc �NO Transfer of

Money IS ALLOWED) will be automatically updated for Mobile Banking

(Transfer of Money).BUT THIS IS CLEAR VIOLATION OF THE RULES. The

customer is not interested for such facility; if BANK is enforcing it

WITHOUT CUSTOMER�S knowledge it is total violation of rules. PLEASE

SEE the regulation as below.

A) Basic level of mobile facility will only give information

about balance enquiry, SMS alert for Credit/Debit (NO MONEY TRANSFER)

B) Second level where money transfer is allowed WHERE PRIOR

REGISTRATION IS A MUST

Airtel has introduced Airtel

Money, but it is not that all Airtel Mobile Holders will get this

facility, UNTILL HE REGISTERS

5) IMPS service was activated for my son WITHOUT HIS KNOWLEDGE (only

GOD knows when it was activated) and DEACTIVATED ON 12 /04/12 after

the mishap has happened. .WHO HAS GIVEN THE AITHORITY TO BANK for all

this WITHOUT TAKING CUSTOMER�CONSENT

6) Bank is apprehending that the hacking has taken place from a

public cyber caf� which has been never used by my son .In case of such

happening Computer Address will change for which a onetime password is

given NOT DONE IN THIS CASE MOREOVER in case of such fund transfer Add

Payee Feature will be there and the customer will receive a URN

(Unique Registration No, HIGH SECURED PASSWORD)) to his mobile .NOT

RECEIVED

7) ICICI Bank advised to approach law enforcing people (POLICE) which

has already been done through a FIR. If a person keeps the flat door

open at night and some theft incident occurs at night there is no

point in saying the police should look into it and the resident has no

responsibilty.Why in this case RBI/NPCI Guidelines for registration

have been violated, BANK MUST CLARIFY.(security checks NOT PROPER)

8) IMPS mean Interbank Mobile Payment Service through mobile phones.

However in ICICI Bank they had originally 4 channels of IMPS,

a)iMobile,b)*525#,c)SMS and d)Internet(net banking).Now their internet

shows that only first three modes are available. Irrespective of any

procedure first you have to generate MMID (Mobile Money Identifier)

For net banking procedure the procedure is as follows

For the sender 1) FIRST Generate MMID (a seven digit code) which is

issued by the bank TO THEIR MOBILE BANKING REGISTERED CUSTOMER

I do not know why this IMPS facility was accorded to an

UNREGISTERED customer. I have Internet facilities at State Bank(only

Viewing, NO TRANSACTION Right).If money transfer takes place from this

a/c the bank cannot avoid its responsibility

I accept that there has been a hacking, BUT I HAVE TWO BASIC QUESTIONS

A) WHY NO PRE REGISTRATION WAS DONE FOR THIS NEW SYSTEM WHICH IS A

MUST AS PER GUIDELINES

B) HOW FUND TRANSFER FROM AN UNREGISTERED CUSTOMER WAS ACCORDED AND

WHO WILL TAKE THIS RESPONSIBILTY

C) MOREOVER RBI GUIDELINE SAYS TAKING INTO ACCOUNT THE RISKS ARISING

OUT OF UNAUTHORISED TRANSFER THROUGH HACKING BANKS WOULD NEED TO

ASSESS THE LIABILITIES ARISING OUT OF SUCH EVENTS AND TAKE APPROPRIATE

MEASURES LIKE INSURING THEMSELVES AGAINST SUCH RISKS, AS IN THE CASE

OF INTERNET BANKING

In line with my statements above all supporting

documents CAN/WILL BE SENT when asked for. As this is a case under

Consumer Protection Act, 1986(APPLICABLE ALSO FOR MOBILE BANKING

SERVICE AS WELL, as per RBI) I demand that full money should be paid

back to us by Bank and in view of your position as an esteemed

organization kindly help us, as NO PROCEDURE HAS BEEN MAINTAINED BY

THE BANK WHICH IS CLEAR VIOLATION of the rules. So far the negotiation

has failed

Please note that ALTHOUGH ICICIC BANK IS SAYING THAT THE

HACKING HAS TAKEN PLACE THROUGH NET BANKING.BUT IT MUST BE BORNE IN

MIND THAT NET BANKING IS ONE OF THE PROCEDURE in ICICI Bank OF

IMPS(Inter Bank Mobile Payment System)FOR WHICH PRIOR REGISTR

WITH THE CUSTOMER IS ESSENTIAL(as per RBI and National Payment

Corpn,Regulator for IMPS)For IMPS through Net Banking there are also

certain procedures, which has been violated by ICICI.For hacking etc

as per RBI Insurance should have been done

For Fund Transfer URN has to be generated and communicated to

the mobile no registered (NOT REGISTERD FOR MONEY TRANSFER) and a

procedure GENERATE MMID (Mobile Money Identifier) has to be created

MMID will be issued to only MOBILE BANKING REGISTERED CUSTOMER.(Not

Done)

I CAN SEND YOU ALL GUIDELINES/DIRECTIVES of REGULATORS (RBI

etc) in this regard, when asked for

As my son is abroad ICICI Bank refused to entertain me, but

when I intimated about Banking Ombudsman procedure of authorization

they SUCCUMBED to my pressure

BASIC QUESTION is whether registered for IMPS OR NOT.A/C opened in end

October,2007,IMPS publicly launched in November,2010.This A/C NOT

REGISTERED FOR IMPS,still money transfer took place through IMPS(any

mode).SUCH A NICE SECURITY SYSTEM

I have also an A/C at one ICICI Branch with net banking facility,BUT

NO IMPS REGISTRATION,NO MONEY TRANSFER FACILITY THROUGH Mobile Banking

I have an A/C at SBI with net banking facility(ONLY VIEWING RIGHTS,NO

TRANSACTION RIGHT).Whenever I open SBI page after log in IT CLEARLY

SHOWS YOU HAVE NO TRANSACTION RIGHT,to avail it contact your branch.No

money transfer can take place unless I opt for it and BANK CANNOT out

of its whims enroll me for any scheme without my knowledge

1 Answer from Attorneys

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