e-Circular

CORPORATE STRATEGY & NEW BUSINESSES.

Sl. No. : 205/2011 - 12
Circular No. : CS&NB/CS&NB-TECH/10/2011 - 12
Tuesday,June 14,2011.
.
13.06.2011
Circular CS&NB/MBS/2011-12/07
The Chief General Manager,
State Bank of India,
Local Head Office,
All Circles
Dear Sir/Madam,
Mobile Banking Service (MBS)
Fraud Reported
Recently one of the Circles has reported a case wherein fraud could be perpetrated due
to lapse on the part of the branch functionaries to verify the signature of the applicant on
the Application Form for Mobile Banking Service. The modus operandi of the fraud case
is as under:
A Savings Bank account was opened in one of the branches by the fraudster on
the strength of voter ID card, electricity bill as proof of identity and address
respectively and an introduction from an account holder. Subsequently, after
obtaining required information about some customers and their accounts, the
fraudster approached different branches to enable these accounts for Mobile
Banking Service using different mobile numbers and transferred Rs.5,58,700/from these accounts to his newly opened account. The fraud came to light when
two of the customers informed the Bank that they have not enabled Mobile
Banking for their accounts and that the funds have been transferred fraudulently.
2. An internal investigation was carried out by the Circle and findings of the report
bring out the following lapses on the part of branch functionaries:
Signatures of the customers on the application forms for Mobile Banking
Service differed from those on record indicating that the branch staff did not
verify the signatures before enabling the accounts for Mobile Banking Service.
The account of the fraudster was opened without proper verification of the
documents submitted and the genuineness of the introducer.

3. In order to obviate the possibilities of such incidents in other branches, we reiterate

the Circular instructions issued in regard to enabling a customers account for Mobile
Banking Service:
After completing the validation process over mobile handset which includes
obtaining User ID & default MPIN and changing the default MPIN, the customer
can complete the registration process either over ATM or at the home branch of
the account to be enabled for Mobile Banking Service.
If the customer approaches the branch for registration for MBS, an application
has to be obtained from him in the prescribed form (Annexure A).
The application form should be scrutinized by the official in charge of Registration
of Mobile Banking Service to verify the genuineness of the information submitted
by the applicant. It should be ensured that the applicant has the authority to
operate the account by verifying the signature on the application form with
that on record in the Banks System. This can be done during the registration
process also. After entering the account number (both primary and secondary
accounts) in the CBS screen for MBS registration, the signature can be invoked
and scrutinized by pressing F10 button on the keypad.
The registration for MBS has been enabled for staff having the capability level of
5 and above without maker-checker which means that an official of capability
level 5 and above can enable a customer for MBS in his sole rights. Though
mobile banking registration is treated as a non financial transaction, it may
be borne in mind that linking a particular account to a given user id and
mobile number, gives unfettered authority to the owner of the mobile
number to debit the linked account. Hence utmost caution should be
exercised in scrutinizing the application form and signature verification.
The application forms for MBS registration may be serially numbered, arranged
and suitably preserved for permanent record in a fashion similar to the Account
Opening Forms.
Joint accounts where the account is to be operated by all or some of the account
holders jointly cannot be registered for mobile banking service.
4. Please bring the contents of the Circular to the notice of all the branches under your
control and ensure meticulous compliance.

Yours faithfully,

Chief General Manager (CS&NB)

The Branch Manager

State Bank of India

Date :
Sl. No.:

-------------------------* I/we wish to register/ deregister for Mobile Banking Services of SBI offered under State Bank FreedoM.
I/we submit the information required for the purpose as under:
Name of Customer (Maximum 20 Characters and leave a box blank after each name)
(Surname)
Email id:

(First Name)

(Middle Name)

Date of Birth:

User ID
DD

MM

YY

My Mobile Number:
Primary /Main Account number
Other Account Numbers

Single/Joint# Accounts
Single/Joint # Accounts

Add/ Delete

I/we have read the terms and conditions prescribed by the Bank for offering Mobile Banking Services to its
customers and unconditionally accept them. I/we am/are also aware that Bank is entitled to modify the terms
and conditions without any notice and posting them on the Banks website would constitute appropriate
notice. I/we agree that the transactions executed while using mobile banking services under my/our User ID
and MPIN will be binding on me/ all the joint account holders.
Date:
Customers Signature
(* Please choose the option)
(# Rights on the SBI FreedoM Service will be same as that in your account at the Branch. Accounts which
are operated by all or some of the account holders jointly are not eligible for mobile banking services.)

FOR OFFICE USE ONLY

Verified the details of the account holder from the record and found correct. Signature (s) of the applicant
(s) verified with those on record with the Bank and found correct. The applicant is permitted to subscribe
to Mobile Banking Services offered by the Bank.

Date:

Authorised Official

Details uploaded on the Core System for enabling the account(s) for Mobile Banking Services requested by
the customer
Date:

Authorised Official