The Treasury Department is reportedly proposing tougher measures to protect the public from cyber fraud. This is a result of a recent increase in incidents related to fraud on the Baroda World app. The measures are intended to be part of a broader national effort to combat cyber crime. The sources pointed to recent interagency meetings focused on strengthening cybersecurity and combating financial fraud.
The urgency of action is clear from the statistics. The National Crime Records Bureau in India reported more than 1.1 million cases of cyber fraud in 2023 alone, amounting to a staggering sum of Rs 7,488.63 billion ($8.9 billion). To counter this growing threat, the Home Ministry has set up the Indian Cyber Crime Coordination Center (I4C). This central authority coordinates national efforts to combat all types of cybercrime.
Check your bank’s business correspondent
The ministry should support stricter KYC (Know Your Customer) procedures and greater control of banks and financial institutions when introducing new merchants. This is especially true for business correspondents (BCs) as they may be more vulnerable to security breaches. For those who don’t know, a BC is a bank representative who helps villagers open bank accounts. Business correspondents receive a commission from banks for each new account, transaction made through a business correspondent, loan applications processed, etc.
Strengthen data security at the merchant level
This proposal highlights the need for improved data security and privacy practices at the merchant and BC levels. Because vulnerabilities in these areas can open up opportunities for cybercriminals.
The RBI could target fraud hotspots including micro ATMs
Sources suggest that the Reserve Bank of India (RBI) may advise banks to consider focusing BC on areas with high prevalence of cyber fraud. Additionally, the RBI may recommend stricter procedures for BC and even block micro ATMs that are involved in fraudulent activities.
RBI bans Bank of Baroda World app
In October 2023, the Reserve Bank of India (RBI) banned state-owned Bank of Baroda from acquiring new customers through BoB World’s mobile application due to public oversight concerns. Responding to the RBI’s instructions, Bank of India said it has already taken corrective measures to address the central bank’s concerns and has taken further steps to address the remaining deficiencies.
“The Reserve Bank of India, in exercise of its powers under Section 35A of the Banking Regulation Act, 1949, has directed Bank of Baroda to immediately terminate the further registration of its customers through the PopWorld mobile application,” the central bank said. in the statement.
The RBI said that this action was taken due to some serious regulatory issues identified while connecting customers to this mobile app. “Further onboarding of the bank’s customers to the Bob’s World app is subject to the rectification of identified deficiencies and confirmation of appropriate processes from the bank to the satisfaction of the RBI,” he added.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.