The Chhattisgarh

Tag: RBI

  • TRAI Allots New 160 Mobile Phone Series To Key Financial Entities To Curb Spams |

    New Delhi: The government has allocated 160 mobile phone series for making transactional and service voice calls for all entities regulated by RBI, SEBI, IRDAI and PFRDA in the first phase, in order to prevent the duping of citizens from the fraudsters.

    The Telecom Regulatory Authority of India (TRAI) met representatives from the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI), and other financial institutions and all the telecom service providers (TSPs).

    Once the 160 mobile series is implemented, it will help in the easy identification of the calling entity. The meeting provided a platform for the exchange of ideas among the regulators, entities and telecom service providers regarding the effective utilisation of this series, said the Ministry of Communications.

    The operation of the 140 series, at present being used for promotional purposes, is being migrated to distributed ledger technology (DLT) platform and scrubbing of digital consent is also being operationalised, said the Ministry.

    “With the implementation of the above two measures, substantial control on spam calls from 10-digit numbers is expected,” said the Ministry. At the meeting, the regulators, banks and other financial institutions emphasised the need to work collaboratively to curb the menace of spam, particularly through voice calls and assured all cooperation for the implementation of various initiatives by TRAI in a time-bound manner.

  • RBI To Set Up Digital Payments Intelligence Platform To Combat Online Fraud |

    New Delhi: In a bid to bolster the safety and security of digital payments and enhance regulatory frameworks, the Reserve Bank of India (RBI) unveiled a series of proposals aimed at fostering innovation, inclusivity, and efficiency in the financial ecosystem.

    These initiatives, announced by RBI Governor Shaktikanta Das, signify the central bank’s commitment to fortifying India’s digital infrastructure and promoting a conducive environment for financial transactions. One of the key announcements made by Governor Das pertained to the establishment of a Digital Payments Intelligence Platform. 

    This platform, leveraging advanced technologies, aims to mitigate payment fraud risks and enhance the safety of digital transactions. According to the annual report released by the Reserve Bank of India (RBI) on May 30, there was a significant surge in the number of financial frauds reported by banks, increasing by 166 per cent year-on-year in the financial year 2023-24 to reach 36,075 cases.
    This figure starkly contrasts with the 13,564 cases reported in the previous fiscal year, FY23.

    Despite the notable rise in the number of fraud cases, there was a substantial decrease in the total amount involved in these incidents. The amount of money associated with total bank frauds plummeted by 46.7 per cent year-on-year in the financial year 2023-24, totaling Rs 13,930 crore. In comparison, the amount recorded in FY23 stood at Rs 26,127 crore.

    RBI has proposed a revision of the limit of bulk deposits for Scheduled Commercial Banks (SCBs) and Small Finance Banks (SFBs). This move, aimed at enhancing flexibility and aligning with evolving market dynamics, underscores the RBI’s commitment to fostering a conducive environment for the banking sector.

    Currently, banks have the discretion to offer differential rates of interest on bulk deposits based on their requirements and Asset-Liability Management (ALM) projections. The existing bulk deposit limit for SCBs (excluding Regional Rural Banks) and SFBs, set at ‘Single Rupee term deposits of Rs 2 crore and above,’ was established in 2019.

    However, following a comprehensive review, the RBI has proposed to revise this definition to ‘Single Rupee term deposits of Rs 3 crore and above’ for SCBs and SFBs. In addition to the proposed revision for SCBs and SFBs, the RBI has also suggested defining the bulk deposit limit for Local Area Banks (LABs) as ‘Single Rupee term deposits of Rs 1 crore and above,’ mirroring the criteria applicable to Regional Rural Banks (RRBs).

    RBI has also unveiled plans to rationalize export and import regulations under the Foreign Exchange Management Act (FEMA), 1999. This initiative, driven by the imperative of progressive liberalization and operational flexibility, underscores the RBI’s commitment to fostering a conducive environment for international trade and investment.

    By eliminating redundancies, enhancing clarity, and reducing procedural complexities, the RBI aims to promote ease of doing business for all stakeholders involved in cross-border trade.
    The RBI aims to streamline and simplify operational procedures related to export and import transactions, thereby reducing administrative burdens and enhancing efficiency for businesses and authorized dealer banks.

    By aligning regulations with international best practices and market realities, the RBI seeks to create a business-friendly environment conducive to fostering trade and investment growth. Simplified regulations will facilitate smoother trade transactions, encouraging businesses to explore new markets and expand their global footprint.

    While promoting ease of doing business, the RBI remains committed to ensuring compliance with regulatory requirements and safeguarding the integrity of the financial system. The proposed rationalization will uphold the principles of transparency, accountability, and risk management in cross-border transactions.

    As part of the process, the RBI plans to publish draft regulations and directions on its official website by the end of June 2024. In a bid to enhance the convenience and efficiency of digital payments, RBI has unveiled plans to expand the e-mandate framework to include recurring payments for Fastag, National Common Mobility Card (NCMC), and similar services.

    This initiative, aimed at modernizing payment systems and promoting financial inclusion, underscores the RBI’s commitment to fostering innovation and leveraging technology to meet evolving consumer needs. The current UPI Lite service permits customers to load their UPI Lite wallets with up to Rs 2000/- and conduct transactions of up to Rs 500 from the wallet.

    To enhance the seamless usage of UPI Lite for customers, and in response to feedback from various stakeholders, it is suggested to integrate UPI Lite into the e-mandate framework. This integration would introduce an auto-replenishment feature for UPI Lite wallets, automatically refilling the wallet balance when it falls below a predetermined threshold set by the customer.

    Since the funds remain under the customer’s control (transferring from their account to the wallet), it is proposed to eliminate the need for additional authentication or pre-debit notifications. Relevant guidelines pertaining to this proposal will be issued shortly.

    RBI has embarked on a mission to foster innovation and transformation in the financial sector with the launch of its third edition of the global hackathon, “HARBINGER 2024 – Innovation for Transformation.”

    It would feature two primary themes: ‘Zero Financial Frauds’ and ‘Being Divyang Friendly.’ Solutions aimed at bolstering the safety and security of digital transactions, with a specific emphasis on identifying, preventing, and combating financial frauds, will be solicited. Additionally, there will be a focus on fostering inclusivity for individuals with physical disabilities. Further details regarding the hackathon will be unveiled shortly.

  • Google Removes 2,200 Fraudulent Loan Apps From Play Store: MoS Finance |

    New Delhi: The government on Tuesday informed Parliament that Google has suspended or removed more than 2,200 fraudulent loan apps from its Play Store between September 2022 and August 2023.

    The government is constantly engaged with the Reserve Bank of India (RBI) and other regulators and stakeholders concerned to control fraudulent loan apps, Minister of State for Finance Bhagwat K Karad said in a written reply to Rajya Sabha.

    “As per the information received from MeitY (Ministry of Electronics and Information Technology), during April 2021-July 2022, Google had reviewed approximately 3,500 to 4,000 loan apps and suspended/removed over 2,500 loan apps from its Play Store,” he said. (Also Read: Three IPOs To Hit Primary Market On Wednesday; Aim To Raise Rs 1,700 Crore)

    Similarly, he said, during September 2022-August 2023, over 2,200 loan apps were removed from the Google Play Store. Google removes 2,200 fraudulent loan apps from Play Store: 

    “Further, Google has updated its policy regarding enforcement of loan apps on the Play Store and only those apps are allowed on the Play Store which are published by Regulated Entities (REs) or those working in partnership with REs. It has also deployed additional policy requirements with strict enforcement actions for loan apps in India,” he said.

    The Reserve Bank has issued regulatory guidelines on digital lending, which aims at firming up the regulatory framework for digital lending, while enhancing customer protection and making the digital lending ecosystem safe and sound, he said. The Indian Cyber Crime Coordination Centre (I4C), Ministry of Home Affairs (MHA) has been proactively analysing the digital lending apps on a continuous basis, he said.

    In order to facilitate the citizens to report cyber incidents, including illegal loan apps, he said, MHA has launched a National Cybercrime Reporting Portal (www.Cybercrime.Gov.In) as well as a National Cybercrime Helpline number ‘1930’. (Also Read: Company Loses Rs 200 Crore In Deepfake Scam Via Fake ‘CFO’ Video Call)

    To spread awareness against cybercrimes, he said, the government has been taking various initiatives from time to time which include cyber safety tips through social media accounts, publishing of handbook for adolescents/students, publishing of ‘Information Security Best practices’ for the benefit of government officials, organising cyber safety and security awareness weeks in association with states/Union Territories etc.

    In addition to these, he said, RBI and banks have also been taking cybercrime awareness campaigns through dissemination of messages on cybercrime through SMS (Short Messaging Service), radio campaigns, and publicity on prevention of ‘cybercrime’. Further, RBI has been conducting electronic banking awareness and training (e-BAAT) programmes, which focus on awareness about frauds and risk mitigation, he said.

    In a reply to another question, Karad said, JanSamarth Portal was launched to provide a common platform for availing loans under credit-linked government schemes. A total of 1,83,903 beneficiaries have availed loans under the said schemes linked to the JanSamarth portal since its launch till December 2023, he said. Karad, in a separate reply, said 7.25 cases of fraud related to UPI were reported during 2022-23. The amount involved in these fraud cases was Rs 573 crore.