RBI Governor Calls for Action Against Rising Digital Frauds

Reserve Bank of India (RBI) Governor Sanjay Malhotra expressed concerns about the increasing number of digital fraud cases. During his first meeting with the managing directors and CEOs of public and private sector banks after assuming office, he stressed the importance of building robust and proactive systems to combat such threats.

Strengthening Oversight and Customer Service

Governor Malhotra directed banks to enhance oversight of third-party service providers to reduce associated risks. He also emphasised the need to improve customer service and establish efficient grievance redress systems.

Cybersecurity and IT Risk Management

Addressing cybersecurity and information technology risks, Malhotra urged banks to monitor their third-party service providers to minimise vulnerabilities closely. The RBI highlighted these measures in a statement following the meeting.

Collaboration Between RBI and Banks

Governor Malhotra called for close collaboration between the RBI and banks to ensure financial stability and improve the ease of doing business. He sought suggestions from banks on simplifying operations and enhancing efficiency.

Building Resilience and Addressing Global Risks

Malhotra acknowledged the critical role banks play in strengthening the domestic financial system. He pointed out global vulnerabilities that could potentially affect financial stability and urged banks to remain vigilant.

Key Areas of Focus

The Governor outlined priorities for banks, including:

1. Ensuring financial stability.
2. Expanding financial inclusion.
3. Promoting digital literacy.
4. Enhancing credit accessibility and affordability.
5. Investing in technology.

Engagement with Bank Leadership

The meeting was attended by Deputy Governors M Rajeshwar Rao, T Rabi Sankar, and Swaminathan J, along with executive directors overseeing regulation and supervision. These discussions are part of the RBI’s ongoing engagement with senior banking officials to improve supervision and governance.

Sanjay Malhotra took office as the 26th Governor of the RBI on December 11, 2024.

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