RBI to set up registry to minimise bank frauds; details here

The Reserve Bank of India is planning to create a fraud registry with a database of fraudulent phone numbers, websites and modus operandi for digital transactions. The motive behind setting up the fraud registry is to prevent people being duped by dubious virtual transactions. RBI executive director Anil Kumar Sharma stated in a press briefing that the fraudulent websites or phone numbers will be blacklisted. This, in turn, will help reduce instances of fraud. “There is no definite timeline for setting up of the fraud registry. We are talking to different stakeholders including different departments like payments and settlement and supervision of RBI,” said Anil Kumar Sharma.

He also added that key stakeholders and payment system participants will be given access to this registry for near-real time monitoring. Moreover, the aggregated fraud data will be released to customers to make them aware about fraudulent websites and numbers.

Furthermore, he also talked about the Integrated Ombudsman scheme launched by Prime Minister Narendra Modi in November 2021 to strengthen the grievance redressal mechanism for customer complaints against banks, non-bank payment system participants, non-bank financial institutions (NBFCs) and other entities regulated by the RBI. Based on the ‘One Nation-One Ombudsman’ idea, the scheme has one email, one portal and one address for the benefits of customers. The portal allows customers to lodge complaints in Hindi, English as well as 10 local languages.

According to Sharma, almost 418,184 were received under the scheme during 2021-22, out of which 97.9 percent cases were cleared.

As per official data, the number of fraud cases in both public and private sector banks dropped from 265 in FY 21 to 118 in FY22. According to PTI, frauds in the banking sector involving Rs 100 crore or more declined. From Rs 1.05 lakh crore in 2020-21, banks have reported cases worth Rs 41,000 crore in 2021-22.

The Reserve Bank of India has taken many steps over the years including strengthening the fraud governance and response system, improving the Early Warning System (EWS) framework and introducing a dedicated Market Intelligence (MI) Unit for frauds.

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