Banks told to tighten monitoring, have ironclad KYC to avoid new 'Jamtara'

Banking sources indicate there have been brazen violations of Section 17 of the RBI's Master Direction on KYC norms

The alarming increase in online frauds in recent times has prompted the regulator to ask commercial banks to shore up monitoring and make know-your-customer (KYC) credentials ironclad before opening accounts in specific districts of concern across the country.

According to bankers, the online fraud which started in Jharkhand's Jamtara - infamous as India's phishing capital - a few years back has spread its tentacles to ensnare the gullible in Noida, Gurugram, Mewat, Alwar, and Ahmedabad.

Explaining the modus operandi, bankers said these phishers first open bank accounts via digital methods in one or several banks in different parts