Civil society forum writes to RBI Governor seeking information security auditors system for banks

Kolkata, Oct 15

In the wake of multiple instances of online bank frauds through misuse of biometrics data in Aadhaar cards, a popular civil society forum here has appealed to Reserve Bank of India (RBI) Governor Shaktikanta Das for the introduction of information security (IS) audit system for banks.

Bank Bachao Desh Bachao Manch, the said forum representing various sections of the civil society, in its communique to the RBI Governor, has sought appointment of independent IS auditors for all banks.

According to the forum communique, the appointment of independent IS auditors to conduct in depth investigation in all banks, who have mobile banking apps, will enable unearthing of facts so that the entire industry becomes sensitive towards the safety of customers’ deposits.

Instruction to be issued to all the banks not to set any such target on branch functionaries, which in turn could trigger off adoption of malpractices to achieve the same to satisfy the authorities, as per the communique to the RBI Governor, a copy of which is available with IANS.

The forum has also appealed to the apex bank governor to instruct all banks to investigate the operations of business correspondents to detect malpractices, if any, like substitution of biometric details of customers at the time of opening of accounts.

At the same time, the forum has requested the RBI Governor to instruct all banks to investigate the operations of business correspondents to detect malpractices like substitution of biometric details of customers at the time of opening of accounts.

In the communique, the forum has argued that one of the major factors that are propelling rampant bank frauds through misuse of Aadhaar-related biometrics information is the drive initiated by various banks to onboard customers on mobile banking apps through business correspondents as well as employees.

This, according to the forum, has resulted in customers losing substantial amounts through frauds perpetrated by fraudsters.