NEW DELHI: Finance minister Nirmala Sitharaman on Saturday asked public sector bank chiefs to focus on improving cybersecurity and preventing frauds, including increasing consumer awareness on malicious calls, which have become a menace in recent months.
The strong message came in the backdrop of problems with UCO Bank’s Instant Money Payment Service (IMPS) where the bank is yet to recover around Rs 100 crore as well as the irregularities at Bank of Baroda, which was done by its employees in enrolling for the BoB World App. It resulted in a rap on the knuckles by the Reserve Bank of India.
During the meeting with bank chiefs, Sitharaman highlighted how frauds posed a critical threat to the security of customers and the banks themselves and could result in losses and erode public trust.
While bank frauds have come down in recent years, banks have been told to keep an eye on fraud prevention and wilful defrauds and mechanisms, while educating customers on safe banking practices.
In addition, the lenders have been asked to ensure timely identification of accounts and frauds and probe them, while putting in more effort to recover the dues.
“Recognising that the effectiveness of legal action against defaulters before courts and tribunals largely depends on effective representation by lawyers and attorneys assisted by bank officials, the FM called for a performance review of counsel representing public sector banks to ensure better legal outcomes,” the statement said, adding that bankers found conniving will face strict action
The strong message came in the backdrop of problems with UCO Bank’s Instant Money Payment Service (IMPS) where the bank is yet to recover around Rs 100 crore as well as the irregularities at Bank of Baroda, which was done by its employees in enrolling for the BoB World App. It resulted in a rap on the knuckles by the Reserve Bank of India.
During the meeting with bank chiefs, Sitharaman highlighted how frauds posed a critical threat to the security of customers and the banks themselves and could result in losses and erode public trust.
While bank frauds have come down in recent years, banks have been told to keep an eye on fraud prevention and wilful defrauds and mechanisms, while educating customers on safe banking practices.
In addition, the lenders have been asked to ensure timely identification of accounts and frauds and probe them, while putting in more effort to recover the dues.
“Recognising that the effectiveness of legal action against defaulters before courts and tribunals largely depends on effective representation by lawyers and attorneys assisted by bank officials, the FM called for a performance review of counsel representing public sector banks to ensure better legal outcomes,” the statement said, adding that bankers found conniving will face strict action
Read More: Sitharaman: Boost cybersecurity, check bank frauds | India News