RBI ban on Bank of Baroda World app: Finance ministry may have this plan to deal with frauds – Times of India

RBI ban on Bank of Baroda World app: Finance ministry may have this plan to deal with frauds - Times of India

gave Ministry of finance It is reportedly proposing drastic measures to protect citizens. Cyber ​​fraud. This comes after a spate of incidents, including the recent ones. Bank of Baroda World App scam. The measures are said to be part of a broader national effort to combat cybercrime. Sources mentioned an inter-ministerial meeting recently which focused on strengthening cyber security and combating financial fraud.
In 2023 alone, India’s National Crime Records Bureau reported over 1.1 million cases of cyber fraud amounting to Rs 7,488.63 crore ($8.9 billion). To tackle this growing threat, the Ministry of Home Affairs established the Indian Cybercrime Coordination Center (I4C). This central agency coordinates efforts across the country to combat all forms of cybercrime.
Review the bank’s business representatives.
The ministry is said to be advocating tightening of Know Your Customer (KYC) procedures and greater caution by banks and financial institutions while onboarding new traders. This especially applies to business correspondents (BCs) as they are more vulnerable to security breaches. For the uninitiated, BCs are bank representatives, they help villagers open bank accounts. Business representatives earn a commission from the bank for every new account opened, every transaction done by them, every loan application processed, etc.
Strengthening data security at the merchant level
The proposal emphasizes the need to improve data protection and data protection practices at the merchant and BC level. This is because weaknesses in these areas can create opportunities for cybercriminals.
RBI may target fraud hotspots including micro-ATMs.
Sources believe that the Reserve Bank of India (RBI) may advise banks to review the concentration of BCs in areas with high incidence of cyber fraud. Additionally, RBI may recommend stricter onboarding procedures for BCs and even block micro ATMs involved in fraudulent activities.
RBI restriction On Bank of Baroda Global app
In October 2023, the Reserve Bank of India (RBI) barred state-owned Bank of Baroda from adding new customers to its mobile app ‘BoB World’ following material oversight concerns. Responding to the RBI’s directive, BOB said it has already taken corrective measures to address the central bank’s concerns, and has initiated further steps to address any remaining gaps. .
“The Reserve Bank of India, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, has directed the Bank of Baroda to immediately carry out further onboarding of its customers on the ‘BobWorld’ mobile application. suspended,” the central bank said in a statement.
The RBI said the action is based on some material oversight concerns observed in the onboarding pattern of its users on the mobile application. It added that “any further onboarding of the bank’s customers on the ‘BobWorld’ application will be subject to rectification of deficiencies found and strengthening of the relevant processes by the bank to the satisfaction of the RBI.” “

RBI restriction,Ministry of finance,Cyber ​​fraud,Bank of Baroda World App,Bank of Baroda

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