RBI Governor asks banks to have strong methods to curb digital frauds

Reserve Financial institution of India (RBI) Governor Sanjay Malhotra.
| Photograph Credit score: Reuters

Flagging the rising digital frauds, RBI Governor Sanjay Malhotra on Monday urged banks to place in place strong and proactive methods to curb such misdoings in addition to improve their oversight of third-party service suppliers to mitigate the dangers.

Mr. Malhotra alongside together with his deputies — M Rajeshwar Rao, T Rabi Sankar and Swaminathan J — met MDs and CEOs of private and non-private sector banks right here on Monday.

The assembly was additionally attended by Reserve Financial institution of India’s Govt Administrators-in-Cost of Regulation and Supervision.

In his remarks, the RBI chief expressed concern over rise in digital frauds and suggested banks to determine strong and proactive methods to thwart such makes an attempt.

Whereas dwelling upon IT danger administration and cyber safety, the governor urged banks to have enhanced oversight over third-party service suppliers for mitigation of the dangers emanating from them, RBI mentioned in a launch.

“The necessity for RBI and banks to work collectively carefully was emphasised and solutions have been sought from the banks on enhancing the convenience of doing enterprise,” it added.

Additionally, Mr. Malhotra requested the banks to make sure continued monetary stability, deepen monetary inclusion, enhance digital literacy, improve availability and affordability of credit score, strengthen customer support and grievance redress mechanism, and proceed to put money into expertise.

Additional, the RBI chief acknowledged the necessary position performed by the banks in constructing resilience of the home monetary system whereas highlighting a number of the foremost vulnerabilities current globally that may pose draw back dangers.

The assembly on Monday was a part of the central financial institution’s steady engagement with the senior administration of its supervised entities. The earlier such assembly was held on July 3, 2024.