RBI mulls setting up of fraud registry to check banking frauds


Image Source : PTI (FILE PHOTO) Reserve Bank is considering setting up a fraud registry to create a database of fraudulent websites, phones and various modus operandi used for digital fraud.

Highlights

  • RBI is considering setting up a fraud registry to create a database of fraudulent websites
  • Such database will help prevent these fraudsters from repeating the fraud
  • Payment system participants will be provided access to this registry

As part of its efforts to strengthen customer protection, Reserve Bank is considering setting up a fraud registry to create a database of fraudulent websites, phones and various modus operandi used for digital fraud. Such a database will help prevent these fraudsters from repeating the fraud as the websites or phone numbers would be blacklisted, RBI executive director Anil Kumar Sharma said on Monday.

“There is no definite timeline for setting up of the fraud registry. At present, we are talking to different stakeholders including different departments like payments and settlement and supervision of RBI,” he said. Payment system participants will be provided access to this registry for near-real time fraud monitoring. The aggregated fraud data will be published to educate customers on emerging risks.

Sharma also said that the customers of the Core Investment Company (CIC) would come under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021. Prime Minister Narendra Modi last year launched an integrated consumer grievance redressal mechanism for addressing service deficiencies in banking, NBFCs and digital payment systems.

To make the alternate dispute redressal mechanism simpler and more responsive to the customers of regulated entities, the prime minister had launched ‘One Nation One Ombudsman’. Sharing complaints filed under the Ombudsman Scheme, he said, 4.18 lakh complaints were received during 2021-22 as against 3.82 lakh in the previous year. As many as 97.9 per cent cases were cleared last financial year as compared to 96.5 per cent in the preceding year.

Stressing that customers should never share account details with anyone, he said, customers should immediately report any fraud related incidence to the bank to minimise his or her risks. Do not download any unknown app on your phone or device, he said, adding, always access the official website of a bank, NBFC or e-wallet provider.

Also Read | RBI lifts restrictions on American Express; allows onboarding new domestic customers

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