Govt. to hold discussion with RBI, Trai, NPCI after the UCO Bank incident
The Finance Ministry and
the parliamentary panel on ICT have started investigations after the recent
issue at UCO Bank
and a rise in daily fraud cases. The Financial services secretary Vivek Joshi will have a discussion with the Reserve Bank of India (RBI), Trai, the telecom department and the National Payments Corporation of India (NPCI) next week.
Simultaneously, the standing committee has
already engaged in discussions with the finance ministry and the Managing
Director of Punjab National Bank (PNB).
Reported fraud cases reached nearly 13,500 in the
last year, compared to 9,100 in the previous fiscal year, marking an increase
of almost 50%. As per the analysts, these figures do not reflect the situation
completely as many consumers do not file complaints.
The Department of Financial Services has enlisted
the Indian Cyber Crime Coordination Centre (I4C), an agency under the home
ministry, to provide insights from the National Cybercrime Reporting Portal's
four-year data and address existing challenges. Despite ongoing efforts by
banks to educate consumers on data security, instances persist where account
holders unknowingly share passwords or screens with fraudsters. Recognising the
limitations faced by banks in protecting consumers, the regulator and government
are exploring various measures to halt the outflow of funds even after they
have been transferred between accounts.
The UCO Bank incident caused the immediate
The government and the Reserve Bank of India
(RBI) are investigating lapses at UCO Bank. Earlier this month, Kolkata-based
public sector lender UCO Bank reported erroneous credit of Rs 820 crore to
account holders of the bank via Immediate Payment Service (IMPS). According to
the bank, during November 10-13 due to technical issues in IMPS, certain
transaction(s) initiated by holders of other banks have resulted in credit to
the account holders in UCO Bank without actual receipt of money from these
banks. IMPS is a real-time interbank electronic funds transfer system without
The bank blocked the recipients' accounts and has
been able to recover Rs 649 crore out of Rs 820 crore.