The Reserve Bank of India (RBI) has begun preparations to implement major reforms in the country's banking system. The RBI has released a draft of 238 new banking regulations to the public and is seeking suggestions until November 10th. These regulations could be implemented by early 2026, following public opinion and feedback from banking institutions. These proposed changes aim to enhance customer security, simplify banking services, and ensure accountability of banks.

Strict Provisions on Cyber ​​Fraud
The RBI has stated that if a customer's account is subject to cyber fraud and they report it to the bank within three days, their liability will be considered zero, meaning the customer will not suffer any loss. Furthermore, if banks fail to take timely action in such cases, they could face a penalty of up to ₹25,000. This will require banks to be more vigilant about cybersecurity.

Relief for Customers in Locker Disputes
Significant changes have also been made in the interest of customers regarding locker disputes. If a customer's locker is stolen or damaged due to negligence or security lapses by the bank, the bank will be required to pay compensation up to 100 times the locker rent.

Simplification of KYC Process
The new rules have simplified the KYC (Know Your Customer) process. KYC will be required once every 10 years for normal accounts, every 8 years for medium-risk accounts, and every 2 years for high-risk customers. This will relieve customers of the hassle of repeatedly submitting documents.

Improvements in Loan Rules
Significant relief has also been provided to customers in loan-related matters. Now, all banks will have to adopt a uniform formula for determining interest rates, ensuring transparency. Additionally, prepayment penalties on all loans will be eliminated. This will allow customers to repay their loans early without any additional fees.

Special Facility for Senior Citizens
A proposal has also been made to provide door-to-door banking facilities to customers aged 70 years and above. This means they will not need to visit a bank branch; bank officials will provide essential services at home.

When will the new rules be implemented?
The RBI has stated that after considering suggestions from the public and banks, these new rules will be implemented in a phased manner between January 1, 2026, and April 1, 2026. These changes will increase transparency in the banking sector, improve customer experience, and make the banking system more accountable.

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