Reserve Bank of India (RBI) Governor Sanjay Malhotra has raised serious concerns about the growing threat of digital fraud in the country.
Speaking at an event in Mumbai on Friday, he urged banks and financial institutions to follow rules in their true spirit, not just as a formality.
According to him, digital fraud has now become a major challenge for the entire nation and needs collective action to control it.
Digital Banking: A Boon with Hidden Risks
The RBI Governor pointed out that digital platforms have made banking services faster and more accessible for people across India.
Opening accounts, transferring money, and accessing loans has become easier than ever.
However, he warned that this convenience also comes with risks.
Weak security systems, hidden charges, incomplete information shared with customers, and unethical debt recovery practices can harm users and reduce trust in the banking system.
Need for Stronger Monitoring and Coordination
Malhotra explained that while digitization has expanded banking operations, it has also increased financial risks.
To tackle this, he emphasized the need for better coordination among banks.
Sharing information can help identify mule accounts and suspicious transactions at an early stage.
He also stressed the importance of using data and technology more effectively.
According to him, advanced monitoring systems should be developed so banks can be supervised continuously, helping prevent fraud before it causes major damage.