Digital Fraud: Amid rising incidents of digital fraud, Reserve Bank of India (RBI) Governor Sanjay Malhotra has asked banks to curb them. The RBI Governor has also urged banks to create a strong and proactive system for this and increase monitoring of third-party service providers to reduce risks.
After taking over as RBI Governor, Sanjay Malhotra has held a meeting with CMDs and Chief Executive Officers (CEOs) of public and private sector banks in which he said these things. During this, RBI Deputy Governors – M Rajeshwar Rao, T Rabi Shankar and Swaminathan J were also present. The Executive Director in charge of Regulation and Supervision of the Reserve Bank of India also attended the meeting.
The RBI Governor expressed concern over the increase in digital fraud and advised banks to establish strong and proactive systems to thwart such attempts. RBI issued a press release stating that, while discussing the management of information technology related risks and cyber security, Sanjay Malhotra urged banks to increase oversight on third party service providers, so that the risks arising from them can be reduced. The meeting emphasized the need for RBI and banks to work together and suggestions were sought from banks to increase ease of doing business.
Sanjay Malhotra has asked banks to ensure continued financial stability, expand financial inclusion, improve digital literacy, increase the availability and affordability of credit, strengthen customer service and grievance redressal mechanisms and continue investing in technology. Apart from this, the RBI chief acknowledged the important role played by banks in making the domestic financial system combative and highlighted some of the main vulnerabilities present globally that could pose negative risks.
This meeting was a part of the central bank’s continuous interaction with the senior management of its supervised entities. The last such meeting was held on July 3, 2024.
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