YES Bank will offer an explanation to the Reserve Bank of India (RBI) on Monday detailing the circumstances that led to a cyber-fraud in one of its customers' bank account, sources in the central bank said.
Ankur Korane, a customer of YES Bank's Mulund branch, had claimed that Rs 1 crore was stolen from his bank account. The money was transferred from his account through real time gross settlement (RTGS) system.
RTGS is an online system that allows high-value money transfer between bank accounts. The transfer of funds is real-time and the beneficiaries are alerted about the transaction through e-mail notifications.
Korane had filed a first information report (FIR) with the police and a case has been registered for cheating and impersonation. Media reports claimed that the case will be transferred to the cyber-crime cell and the economic offences wing of the Mumbai police.
Rana Kapoor, founder, managing director and chief executive of YES Bank confirmed that the bank is probing the incident. "We are probing and will (provide) suitable answers by February 4," Kapoor said in a text reply while responding to a query on whether RBI has sought an explanation from the bank on this case.
It is learnt that the bank had stopped fund transfer from Korane's account when he alerted the private lender about the unauthorised transactions. The money was transferred to different accounts through a number of transactions. One of the beneficiary accounts is with another branch of YES Bank.
There were two layers of security check on Korane's account. Fund transfer from that account required a 'maker' or initiator and the transaction had to be approved by a 'checker'.
"These things do not happen unless there is a grave lapse or negligence on the part of the customer,” a banker said requesting anonymity.
Most YES Bank officials were not willing to comment as police is currently investigating the case. The bank is "extending all necessary cooperation" a spokesperson of the bank said without offering further details.
This is the second instance of a cyber-crime involving stealing of money from bank accounts in recent weeks. In January, 2013 media reports claimed that the economic offences wing of the Delhi police arrested two persons for siphoning money from bank accounts of several persons through net banking.