Civil society forum writes to Governor of RBI seeking information security auditors system for banks

Bank Bachao Desh Bachao Manch, a forum representing various sections of civil society, is seeking ways to combat Aadhar card-related bank fraud

Bank Bachao Desh Bachao Manch, a forum representing various sections of civil society, is seeking ways to combat Aadhar card-related bank fraud
Bank Bachao Desh Bachao Manch, a forum representing various sections of civil society, is seeking ways to combat Aadhar card-related bank fraud

Forum asks RBI Governor Shaktikanta Das for bank security auditors

Given the rising number of incidents involving online bank frauds due to the misuse of biometrics data from Aadhaar cards, a highly respected civil society forum has taken action. They have reached out to Reserve Bank of India (RBI) Governor Shaktikanta Das, urging him to implement an information security (IS) audit system for banks. This measure aims to ensure enhanced protection against such fraudulent activities and safeguard the interests of customers.

Bank Bachao Desh Bachao Manch, the said forum representing various sections of civil society, in its communique to the RBI Governor, has sought the appointment of independent IS auditors for all banks.

According to the forum communique, the appointment of independent IS auditors to conduct in-depth investigations in all banks, that have mobile banking apps, will enable unearthing of facts so that the entire industry becomes sensitive towards the safety of customers’ deposits.

Instruction to be issued to all the banks not to set any such target on branch functionaries, which in turn could trigger off adoption of malpractices to achieve the same to satisfy the authorities, as per the communique to the RBI Governor, a copy of which is available read.

The forum has also appealed to the apex bank governor to instruct all banks to investigate the operations of business correspondents to detect malpractices, if any, like substitution of biometric details of customers at the time of opening of accounts.

In the communique, the forum has argued that one of the major factors that are propelling rampant bank frauds through misuse of Aadhaar-related biometrics information is the drive initiated by various banks to onboard customers on mobile banking apps through business correspondents as well as employees. This, according to the forum, has resulted in customers losing substantial amounts through frauds perpetrated by fraudsters.

[With Inputs from IANS]

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1 COMMENT

  1. Banks should have security & bank employees to be on regular financial crime surveillance for siding with financial criminals & one instance then confiscate his entire ancestral property, including every asset in his house, suspend him & no govt or private employment for his family members in any of the top companies, except the optio to work in tea & samosa stalls

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