Indian banks urge customers to opt Mobile/Net Banking over cash

Last updated on February 9th, 2023 at 12:33 pm

Amid the national lockdown, declared to curtain the spread of corona virus, Indian banks suggested their customers to opt for mobile or internet banking over cash. The shutdown has resulted in lesser staff. The move helps in preventing the unnecessary crowding of branches. The banks are offering digital schemes in the wake of pandemic to provide more comfortable transaction experience to their customers.

Leading banks such as HDFC Bank, State Bank of India, Kotak Mahindra Bank, ICICI Bank, Axis Bank and RBL Bank issued advisories to customers to not only to make digital payments, but also to bank online.

The communication from Indian banks came after the Reserve Bank of India, on Monday asked all domestic lenders to urge their customers to limit the use of cash. “…public can use these modes of digital payment from the convenience of their homes through online channels and avoid using cash which may require going to crowded places for sending money or paying bills,” the central bank said in a statement.

The country’s largest lender, State Bank of India (SBI) urged it’s users, who are working from home to use net banking or YONO mobile application.

The leading private lender, HDFC bank said, “We’ve used all communication channels to get the message to our customers,” an HDFC Bank spokesperson said.

“We are proactively educating and encouraging our customers to take advantage of digital banking facilities from the comfort of homes,” said Deepak Sharma, chief digital officer at Kotak Mahindra Bank. “The Covid-19 pandemic is characterised by people-to-people spread,” adding that the bank has reduced the number of staff working from each branch since Monday, issuing notice to most of the employees to work from home.

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“The contagious potency of the virus is well understood. Physical contact has been defined by various agency as a carrier and at the end of the day cash is a mode of physical contact,” said Topendra Bhattacharjee, head digital banking, RBL Bank.

Besides, the National Payment Corporation of India (NPCI) – an organisation accountable for the retail payments system in India also launched #IndiaPaySafe campaign. The campaign promotes the message of social distancing by asking people to make cashless transactions.