India has filed a legal action against eight major banks alleging that they are not complying with the RBI’s online banking guidelines.
The country’s finance ministry has lodged a counter-notification with the World Bank and the International Monetary Fund (IMF) in the Supreme Court on Wednesday, seeking their assistance in clarifying the issue.
In the counter-notice, the ministry also says that it is seeking an explanation from the banks on how they have failed to comply with RBI’s requirements.
It also said the banks should submit details of their financial transactions on a regular basis.
The move comes after India’s financial sector regulator, the Financial Services Regulatory Authority (FSRA), told banks in February that they should provide the country’s banking sector with an online banking portal that would be accessible to all citizens.
According to a report by The Hindu, the banks were not fully complying with this requirement.
The banks have been accused of not disclosing the identity of the customers that use their services, and are also accused of misleading customers.
The regulator has also requested the banks to disclose the total amount of customers that they have opened accounts for in the country.
The Indian government has been trying to encourage the development of a national banking system by opening up a number of new financial services.
However, there is a growing sense that many of these are being shut down or hampered by the financial institutions themselves.
In fact, the government recently launched a national internet banking portal, but its availability is only limited to certain areas.