All Scheduled
Commercial Banks
Dear Sir,
Internet Banking - Internet based Platforms for dealing in Rupee
Vostro Accounts
Please refer to our
circulars DBOD Comp BC No. 130/07.03.23/2000-01 dated June 14,
2001 and DBOD Comp BC No. 1658/07.03.29/2006-07 dated August 22,
2006 containing guidelines for Internet Banking in India.
2. On
a review, it has been decided that banks may permit internet based
operations on Rupee Vostro Accounts maintained by exchange houses
or banks outside India with them, provided the banks in India
ensure that the software will prevent any unauthorised operation.
The internet based operations on vostro accounts are being
permitted subject to the conditions that:
(i)
Banks will remain responsible for secrecy, confidentiality and
integrity of data.
(ii) Banks should strictly comply with FEMA rules/regulations
issued in connection with operations/maintenance of vostro
accounts in India.
(iii) Banks should strictly adhere to KYC and AML standards and
procedures relating to correspondent banking/exchange houses.
3. In
all other matters relating to internet banking services, banks may
continue to be guided by the instructions contained in our
circulars DBOD Comp BC No. 130/07.03.23/ 2000-01 dated June 14,
2001 and DBOD Comp BC No. 14/07.03.29/2005-06 dated July 20, 2005
respectively on internet banking.
4.
Please acknowledge receipt.
Yours
faithfully,
(Vinay
Baijal)
Chief General Manager
