Banking

RBI to introduce mechanism to check electronic fraud

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jayant-sinhaIf everything falls in the right place, Reserve Bank of India (RBI) would soon introduce a regulatory mechanism to prevent fraudulent electronic transactions which is slated to fix the liability issues arising out of such transactions. The said piece of information was given by the Government to Parliament on Tuesday.

Minister of State for Finance Jayant Sinha said in the Rajya Sabha that the Banking Codes and Standards Board of India in 2014 recommended to limit the customer’s liabilities in such cases.

Underlining that 87% of the transactions in the economy are still in cash, Sinha remarked the government is encouraging cashless transactions. “So much of cash transaction is not good. It leads to cost escalation.”

RBI in its Payment System Vision Document 2012-15 for ushering in a cashless economy suggested drawing up of a policy framework to establish the roles and responsibilities of banks and customers in electronic transactions to minimise cases of fraud, fix responsibilities, and provide zero-liability protection to customers.

The Minister said a white paper was released for public comments in 2013 but the comments were not very encouraging. “Charges levied for electronic transactions operated by the bank are minimal and transparent,” he added.

On a question on the estimation of black money in the economy, Sinha said there was no official estimation of the amount of unaccounted money sent to foreign countries by Indians.

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