NEW DELHI: Days after the problems at UCO Bank and multiple cases of frauds every day, the finance ministry and the parliamentary panel on ICT have decided to look into the matter.
Next week, financial services secretary Vivek Joshi will hold consultations with the Reserve Bank of India (RBI), Trai, telecom department and the National Payments Corporation of India (NPCI), among others, while the standing committee has already held talks with finance. ministry and Punjab National Bank (PNB) MD on the issue.
The financial services department has roped in the Indian Cybercrime Coordination Center (I4C), an agency under the home ministry, which will present data from the four-year-old National Cybercrime Reporting Portal as well as the challenges faced by agencies. Although banks had little control, State Bank of India’s experience in dealing with the growing threat is also on the agenda.
While mechanisms exist and banks seek to educate consumers about keeping their data safe, in a large number of cases, account holders have been found to share their passwords or screens with fraudsters who siphon off funds. Banks expressed their inability to protect consumers in such situations, urging the regulator and the government to explore several options to ensure that money even if transferred from one account can be stopped from outflow.
According to data, almost 13,500 frauds were reported last year (see graphic), against 9,100 in FY22 – an increase of almost 50%. Many, however, believe that the numbers do not present the full picture, as consumers often find it difficult to file a complaint.
Separately, the government and the RBI are also looking into the issue of errors at UCO Bank.