CYBERABAD COPS REQUESTING THE RBI TO IMPOSE STRICT RULES TO PREVENT BANK FRAUDS

Posted by Mohit Bharatiya on February 11th, 2020

Mohit Bharatiya | Bank fraud in India has increased to a great extent in the past few years and it has been affecting the banking sectors negatively. The rising frauds in the banking sectors have made the sector vulnerable to criminal activities and embezzlement. As the recent, Punjab and Maharashtra bank fraud took to the limelight with distressed depositors protesting and demanding that a resolution be made by the Reserve Bank of India to secure the financial savings of many families in India. The situation is slowly escalating and the RBI is on the verge of making a decision in relation to these unsolved bank fraud cases dated back to 2015.

The Cyberabad cops plan to write to the Reserve Bank of India (RBI) to request reviews on rules that are in place while sanctioning loans and protecting customer's confidential information. Also, the fraudulent activities that have been occurring need to be dealt with. As the state capital has reported several fraud cases, the Cyberabad is hoping to get the reserve bank of India to carry out quick actions and remedial measures to investigate and put an end to the distress caused by these acts.

The letter of concern would be first written to the Department of Telecommunications (DOT) to review the rules and regulations that are put in place for Telecom service providers so as to impose new strict restrictions in relation to the verification process when granting sim cards to anyone. While the RBI would be getting a letter of concern in regards to bank procedures when sanctioning loans to customers or providing personal information to people. The situation is a very serious one as customers are getting robbed off their hard-earned money due to the lack of proper supervision, strict rules and regulations surrounding the banking sectors. Therefore, it has become easy for any random person to acquire bank account details of customers just by providing phone numbers, etc.

Personal data and credentials of any customer must not be compromised at any cost and shouldn’t be provided without proper verifications. It is so much easier for a fraudulent person to acquire bank details of anyone as compared to actual customers. The process is much more tedious for customers, so the question is how are these fraudsters able to get sensitive information in such an easy way if customers can’t get access easily. The recent reports of a gang who acquired loans in the names of dead people have created an alarm of how vulnerable the banking sectors.

Although banks have now been following strict rules, this has been proven to not be enough. A much more stringent approach has to be secured by the Reserve Bank of India to prevent these cases from occurring in the future. People trust banks with their life savings and they should not be put at risk of losing it all in an instant due to lack of proper supervision and regulations. The cybercrime police have reported that these cases are partially due to the lack of properly trained telecom services providers. So, both the banks and telecom services companies need to be investigated and the stringent regulatory boards should be put in place to regulate both these sectors.

Mohit Bharatiya is the author of this article. Find more information about Mohit Bharatiya.