Taking serious note of increasing instances of credit card frauds, the Reserve of Bank of India (RBI) said it would probe such incidents. It also asked banks to investigate such cases and take steps to plug loopholes. “We have to find out how it has happened, where it has happened and then take corrective action,” RBI Deputy Governor Anand Sinha said.
He conceded that the magnitude of the frauds is large and said the central bank would consult with other banks to deal with the situation.
If such frauds occur despite robust risk management system, then banks should look for the loopholes and close them, he noted.
According to a 2011 report by RBI’s working group on securing card present transactions, frauds have shot up in tandem with the increasing use of credit/debit cards at delivery channels.
These frauds are the fallout of cards being lost or stolen, data being compromised and skimming, the report noted. At present, the extent of fraud (in relation to volume and outstanding cards) may be low. But it is rising and it is must to make future payment eco-system less vulnerable to them, the report pointed out.
The RBI working group also observed that chances of on international transactions are significantly higher than domestic ones.
Taking serious note of increasing instances of credit card frauds, the Reserve of Bank of India (RBI) said it would probe such incidents. It also asked banks to investigate such cases and take steps to plug loopholes. “We have to find out how it has happened, where it has happened and then take corrective action,” RBI Deputy Governor Anand Sinha said.
He conceded that the magnitude of the frauds is large and said the central bank would consult with other banks to deal with the situation.
If such frauds occur despite robust risk management system, then banks should look for the loopholes and close them, he noted.
According to a 2011 report by RBI’s working group on securing card present transactions, frauds have shot up in tandem with the increasing use of credit/debit cards at delivery channels.
These frauds are the fallout of cards being lost or stolen, data being compromised and skimming, the report noted. At present, the extent of fraud (in relation to volume and outstanding cards) may be low. But it is rising and it is must to make future payment eco-system less vulnerable to them, the report pointed out.
The RBI working group also observed that chances of on international transactions are significantly higher than domestic ones.
