RBI ACKNOWLEDGES FINANCIAL ILL- LITERACY AND LACK OF AWARENESS

                 The Reserve Bank of India has recently come up with Notification dated 21 April 2016 vide ref. no.RBI/2015-16/378 DBR No.Leg.BC.93/09.07.005/2015-16 regarding Publicity in Bank branches cautioning public against placing deposits in dubious schemes.

                The Circular says that RBI has noticed that customers receive telephone calls relating to winning of lotteries/prizes etc. or various dubious schemes have been floated where returns are higher than offered by banks on deposits. The customer believing such messages/schemes remit the required amount apart from divulging details of their accounts to the fraudsters.

               Then circular adds that absence of financial literacy and lack of alertness to fraudulent schemes/calls are the main reasons behind innocent depositors falling prey to such schemes.

               There after circular states that all Scheduled Commercial Banks including Regional rural Banks and Local Area Banks may in their own interest and as customer education effort in interest of public consider designing suitable posters or pamphlets and notices consisting messages of awareness.

                Cyber Awareness Organisation suggests some additional measures which should be implemented on priority basis for prevention of such frauds and protecting public’s hard earned money.

1)    RBI itself is sitting on huge fund known as Depositors Education and Awareness Fund since last two years and should consider releasing same for benefit of customer education and awareness as per old saying CHARITY BEGINS AT HOME!!!!

2)    RBI should mandate all the banks to carry out Customer Cyber Awareness and Education program in each branch on bi-monthly basis to impart security trainings to customers.

3)    RBI should create central helpline for speedy reporting and data analysis of such frauds so as to act faster.

4)    RBI should monitor AML reporting on weekly basis and more consistently.

5)    There has to be synchronization of LEA, RBI AND TSP’s in investigations.

6)    The payments gateways should be properly regulated.

7)    There must be some cooling time for all transactions except few where additional security or authentication measures are followed with prior approval of the customer.

8)    All payment gateways must be compliant with section 43A of I T Act.

9)    RBI should monitor KYC implementation more strictly and illiterate customers should not be provided with any type of Credit/Debit cards.    

                There are many more such suggestions like encouraging talk shows/power point presentations for creating cyber awareness among users etc.

                 We congratulate RBI for the issuance of this circular which is first step towards creating Cyber Awareness and CYBER AWARENESS ORGANISATION feels proud that its cause is at least endorsed by the Apex bank of India.