RBI governor flags rise in digital frauds, advises banks to establish robust and proactive systems

Sanjay Malhotra, Governor, Reserve Bank of India held meetings with the MD & CEOs of Public Sector Banks and select Private Sector Banks on January 27, 2025 in Mumbai. These interactions are part of the Reserve Bank's continuous engagement with the Senior Management of its Supervised Entities. The Governor, in his opening remarks, acknowledged the important role played by the banks in building resilience of the domestic financial system while highlighting some of the main vulnerabilities present globally that can pose downside risks. He exhorted the banks to ensure continued financial stability, deepen financial inclusion, improve digital literacy, enhance availability and affordability of credit, strengthen customer service and grievance redress mechanism, and continue to invest in technology. He also flagged the rise in digital frauds and advised banks to establish robust and proactive systems to thwart such attempts. While dwelling upon IT risk management and cyber security, the Governor urged banks to have an enhanced oversight over third-party service providers for mitigation of the risks emanating from them. The need for RBI and banks to work together closely was emphasized and suggestions were sought from the banks on enhancing the ease of doing business.

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