RBI considers new registry to minimise bank frauds | The Financial Express

RBI considers new registry to minimise bank frauds

Sharma said about 418,184 complaints were received under the Ombudsman Scheme in the last fiscal, against 382,292 in the previous year. About 97.9% of cases were resolved in FY22

RBI considers new registry to minimise bank frauds
he average turnaround time for disposing a complaint at the ombudsman office reduced to 46 days in 2020-21 to 38 in 2021-22.

The Reserve Bank of India (RBI) is planning to set up a fraud registry to create a comprehensive database of fraudulent websites, phone numbers and other details, to prevent unscrupulous elements from duping people through virtual transactions.

Briefing reporters in New Delhi, RBI executive director Anil Kumar Sharma said these websites or phone numbers will be blacklisted, which will help minimise incidences of frauds.

Key stakeholders in the payment system will get access to this registry for near-real time information on frauds. The aggregated data will be published to enhance customer awareness.

“There is no definite timeline for setting up of the fraud registry. At present, we are talking to different stakeholders, including different departments like payments and settlement, and supervision of RBI,” Sharma said.

Customers of the core investment company (CIC) will also come under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021, from September 1. A core investment company is a non-banking financial company (NBFC) engaged in the business of acquisition of shares and securities, and holds not less than 90% of its net assets in equity shares, preference shares, bonds, debentures, debt or loans in group companies.

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In November last year, Prime Minister Narendra Modi launched the Integrated Ombudsman scheme to bolster the grievance redressal mechanism for resolving customer complaints against entities regulated by the RBI, such as banks, NBFCs and non-bank payment system participants. The scheme was based on ‘One Nation-One Ombudsman’ with one portal, one email, and one address for the customers to lodge their complaints. Prior to this, the central bank had three separate ombudsmen — for banks, NBFCs and digital payments.

Sharma said about 418,184 complaints were received under the Ombudsman Scheme in the last fiscal, against 382,292 in the previous year. About 97.9% of cases were resolved in FY22, against 96.5% in the previous year. The average turnaround time for disposing a complaint at the ombudsman office reduced to 46 days in 2020-21 to 38 in 2021-22. It used to be as high as 95 days in 2019-20 under the three separate ombudsmen.

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However, roughly about 37% of the complaints had to be rejected, as they were repeat complaints or complaints with incomplete details. The ombudsman portal is currently available in English and Hindi, but it allows customers to lodge complaints in 10 different local languages as well.

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