Covid-19: Banks, LIC ask customers to avoid visiting branches

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As the second wave of Covid-19 pandemic continues to sweep the country, banks have renewed their campaigns to bring focus back on digital banking.

The Indian Banks’ Association, an umbrella association of banks and financial institutions including public/private banks, payments banks and small finance banks, foreign banks, development financial institutions and co-operative banks, has come up with an `Avoid walk-in, Start login’ campaign. Its tag-line, `Digital banking on, Corona threat gone’ has found favour with retail customers. The basic idea is to deter customers from visiting bank branches.

Banks are offering a host of services online, including electronic payment options such as RTGS, NEFT, UPI, RuPay Card, Internet banking, mobile banking solutions, and credit/debit cards for remote payments, among others. Over the last one year, digital services have become popular among customers.

In its advertising campaign, IBA has clearly asked customers to avoid visiting branches as far as possible. It asks everyone to stay safe and bank using online/mobile facilities to keep away from crowds.

The state-owned Life Insurance Corporation (LIC), the largest insurer in the country, has also come up with an ad campaign, ‘Go digital with LIC’. It has listed a slew of services one can do with a click of your mouse. It is essentially asking customers to avoid visiting branches.

During the lockdown last year, the largest lender in the country, State Bank of India (SBI) had implemented a ‘GharSeBanking’ campaign effectively, using social media and other digital media. It encouraged customers to download its SBI YONO (You Only Need One) app. Apart from the YONO app, it also tried to popularise its other digital products such as YONO Lite, SBI Quick and BHIM SBI Pay, using Facebook Messenger.

In November 2020, HDFC Bank launched ‘Mooh Bandh Rakho’, a campaign to increase awareness on cyber frauds among bank customers. The campaign highlighted how fraudulent transactions were rising at an alarming rate in the country, urging customers not to share their personal information while one continues to pursue the safest digital banking services actively.

Recently, IBA issued an advisory to all member banks in light of the rising infections in the country, asking them to restrict business hours, and stick to basic services only. According to the advisory issued April 21, 2021, banks have been advised to curtail their business operations to four hours between 10-2 pm. It has asked banks to encourage door-step banking activities.

The IBA had issued a couple of advisories even last year during the lockdown. Since the situation is different, and the lockdown rules and timings vary from state to state, IBA preferred to issue a basic set of guidelines this time around.

“Banks will continue to provide four mandatory services — accepting deposits, cash withdrawals, remittance and government businesses. The state-level bankers committees (SLBCs) of each state will review the situation in their respective states and will decide on additional services that can be provided under the existing situation of their state or union territory.” said the advisory.

A banker told Money9.com that the decision to restrict the banking hours has had an unexpected fallout. “Even when the pandemic is growing, the customers do not take social distancing norms seriously. Since most branches have curtailed their working hours, the customers are now crowding inside branches and they are finding it difficult to manage the crowd,” he said.