Soon, you can’t deposit money without account holder’s permission! Know why
New Delhi: In the past couple of years, the government and RBI has worked to make banking easier and convenient for people. From cashless transactions to doorstep banking services for the old and disabled, several steps have been taken to strengthen the banking system and make it more user-friendly.
With the introduction of BHIM UPI, digital transactions have been given a special push as the government aimed to reduce the cash in circulation in the market. The government also introduced several other rules like no transaction above Rs 2 lakh in cash etc. in order to curb black money circulation.
Digital banking has given more control to the account holders. They can complete a majority of their banking tasks such as cash deposit, cash withdrawal, fund transfer etc. from the comfort of their homes, using a smartphone or computer with an internet connection. Bank customers can now get real-time information about any transactions from their accounts through SMS and e-mail.
In order to provide more control to the account holders when it comes to cash deposits, the government might soon disallow any cash deposit without account holder’s permission. This, if implemented would mean that people won’t be able to transfer cash to anyone’s account without their permission.
In her first Budget speech, Finance Minister Nirmala Sitharaman hinted at introducing a system which will give account holders the control over the deposit of cash by others in their accounts. If this proposal comes into effect, even family members or friends will not be able to deposit money into each other’s accounts without account holder’s permission.
The FM said, “Government will initiate steps to empower accountholders to remedy the current situation in which they do not have control over deposit of cash by others in their accounts.”
It is worth mentioning that currently, any person can deposit money in anyone’s account from any branch of any bank across the country as long as they know the account number, bank branch code and other details. Once this rule is implemented, people will not be able to deposit cash in anyone’s account online or through cash deposit machines without account holder’s knowledge and permission.