
M V Rao, the chairman of the Indian Banks’ Association, has highlighted that the significant increase in reported bank frauds, as stated in the Reserve Bank of India’s annual reports, is primarily due to customers falling victim to scams orchestrated by third parties, rather than any flaws in the banking systems. Rao emphasized the importance of raising awareness about early reporting within the crucial initial hours, known as the ‘golden hour,’ to effectively tackle these fraudulent activities.
According to the RBI’s annual report, the number of frauds has surged to 36,075 in FY24 from 13,564 in the previous year. The report also reveals that the majority of these fraudulent incidents are related to digital payments, such as card and internet transactions.
Rao explained, “When investigating the root causes of these frauds, it becomes evident that they are not a result of breaching the bank systems, but rather, someone has deceived the bank’s customers. Ultimately, it is the customers who suffer the loss. Therefore, it is the responsibility of bankers and the industry as a whole to devise strategies that safeguard customers’ interests.”
Rao made these remarks during the inauguration of an online ‘bank clinic’ initiated by the All India Bank Employees’ Association. The purpose of this clinic is to guide customers on how to address their grievances with the bank. Rao emphasized the clinic’s role in creating awareness and stressed the urgency of timely action in combating digital frauds. To report cyber frauds, the government has established the National Cyber Crime Reporting Portal and the national cyber crime helpline, ‘1930.’
In addition to providing guidance to customers on the appropriate course of action, the bank union will also take up customer issues with bank management. C H Venkatachalam, the general secretary of AIBEA, expressed that the resolution of employee matters and wage negotiations under the 12th bipartite wage agreement has allowed the union more time to focus on addressing customer concerns.