Banks Knock RBI Door With Plan To Curb Online Frauds

A threshold for transactions in new accounts, a Central ‘negative registry’ of the accounts of known fraudsters and a standard operating procedure to stop the downstream flow of funds once a fraud is reported—these are some of the measures suggested by Indian banks to stop online frauds, which are on the rise, according to data from the Reserve Bank of India.

- Saubhadra Chatterji|

According to a note by RBI, which has been reviewed by Hindustan Times, one fraudulent transaction occurred for every 55,653 digital transactions in the last quarter of FY22-23, up from one in 59,000 transactions in Q3 of 21-22.

“During the quarter ended March-2023… for every ₹1 lakh of digital payment value processed during the said quarter, ₹1.45 was fraudulent," the note said.

The volume and value of digital transactions highlights the magnitude of the problem—according to the Reserve Bank, in January, 10 billion retail digital payment transactions worth ₹51 trillion were processed.

The central bank said it has launched a web-based workflow system called DAKSH on 6 October 2022 to share threat intelligence obtained from the cyber incident reporting mechanism.