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RBI FOR SAFEGUARDS AGAINST FRAUDULENT E-BANKING

Wednesday, 18 April 2018 | PNS | Dehradun– To allay the fear of the people to avail electronic banking facilities lest they be duped, Reserve Bank of India’s regional office in Dehradun has asked the banks, both nationalised and private, to put in place robust and dynamic fraud detection and prevention mechanism. Informing, the regional director, Reserve Bank of India (RBI), Dehradun, Subrata Das said that the RBI had already issued instructions to the Centre, state governments and the private banks to take necessary steps to protect the interest of the customers. He said that the banks have been directed to put appropriate system and procedures to ensure safety and security of electronic banking transactions carried out by the customers. “Appropriate measures must be taken to mitigate the risks arising thereof. Putting into place a system of continually and repeatedly advising the customers on how to protect themselves from electronic banking and payment related fraud is an imperative in view of such frauds being reported,’ he said. He said that the banks must ask their customers to mandatorily register for SMS alert and wherever available register for e-mail alerts for electronic banking transactions. “The SMS alerts must mandatorily be sent to the customers, while email alerts may be sent wherever registered. The customers must be advised to notify their bank of any unauthorised electronic banking transaction at the earliest after the occurrence of such transaction. The longer the time taken to notify the bank, the higher would be the risk of loss to the bank/customer. To facilitate this, banks must provide customers with 24×7 access through multiple channels, website, phone banking, SMS, E-mail, IVR or dedicated toll free helpline reporting to the home branch and others for reporting unauthorised transactions that have taken place. Banks should also enable the customers to instantly respond by reply to the SMS and email alerts, he said, adding the loss/fraud reporting system should also ensure that immediate response is sent to the customers acknowledging the complaint along with the registered complaint number. The regional director said that the communication systems used by the banks to send alerts and receive their responses must record the time and date of delivery of the massage and receipt of customers’ response. “Bank may also at their discretion decide to waive off any customer liability in cases of unauthorised electronic banking transactions, “he said, adding the banks should not offer facility of electronic transactions other than ATM cash withdrawals to the customers who do not provide mobile numbers to the bank. On the receipt of report of an unauthorised transaction from the customer, banks must take immediate steps to prevent further unauthorised transactions in the account,” Das said.

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