RBI Governor Flags Risks Of Digital Frauds, Asks Banks To Enhance Oversight
The new RBI governor made the remarks during meetings with the managing directors and CEOs of public sector banks and select private sector banks.
Reserve Bank of India Governor Sanjay Malhotra advised banks on Monday to establish robust and proactive systems to thwart attempts of digital frauds amid a rise in such cases.
Dwelling upon information-technology risk management and cyber security, Malhotra urged banks to have enhanced oversight over third-party service providers, the central bank said in a release.
The new RBI governor made the remarks during meetings with the managing directors and chief executive officers of public sector banks and select private sector banks.
On Jan. 14, NDTV Profit had reported that Malhotra would meet private and state-owned banks this month. "These interactions are part of the Reserve Bank's continuous engagement with the senior management of its supervised entities," it said.
While the governor acknowledged the important role played by banks in building resilience of the domestic financial system, he also highlighted some vulnerabilities present globally that can pose risks.
Banks must 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 said.
"The need for RBI and banks to work together closely was emphasised and suggestions were sought from the banks on enhancing the ease of doing business," it said.
The meetings were also attended by Deputy Governors M Rajeshwar Rao, T Rabi Sankar and Swaminathan J, and executive directors-in-charge of regulation and supervision. The previous such meeting was held on July 3, 2024.
Malhotra took over as the RBI governor on Dec. 11, a day after Shaktikanta Das stepped down, completing his six year tenure. Malhotra, who was secretary of the Department of Revenue, comes with nearly 35 years of experience at various levels of the state and central government machinery.
After taking charge at the RBI, Malhotra held a press conference where he discussed that he will focus on technological innovation, financial inclusion, policy continuity and ensuring decision making, keeping public interest in mind.
