Banks need robust systems to curb digital frauds: RBI

Flagging the rising digital frauds, RBI Governor Sanjay Malhotra on Monday urged banks to put in place robust and proactive systems to curb such misdoings as well as enhance their oversight of third-party service providers to mitigate the risks.

Malhotra along with his deputies — M Rajeshwar Rao, T Rabi Sankar and Swaminathan J — met MDs and CEOs of public and private sector banks here on Monday.

The meeting was also attended by Reserve Bank of India’s Executive Directors-in-Charge of Regulation and Supervision.

In his remarks, the RBI chief expressed concern over rise in digital frauds and advised banks to establish robust and proactive systems to thwart such attempts.

While dwelling upon IT risk management and cyber security, the governor urged banks to have enhanced oversight over third-party service providers for mitigation of the risks emanating from them, RBI said in a release.