RBI Governor Urges Banks to Fortify Against Digital Fraud in Key Meeting

RBI Governor Sanjay Malhotra convened with banking heads to address digital fraud, advocating stronger systems and financial stability. Emphasizing cyber security, the meetings sought collaborative efforts for smoother operations. Malhotra’s leadership brings strategic vision from a diverse background, propelling the RBI towards enhanced resilience and inclusivity in banking.

In a crucial meeting with managing directors and CEOs of India's banking sector, RBI Governor Sanjay Malhotra raised alarms over the rising incidence of digital fraud. The governor urged banks to adopt robust and proactive measures to mitigate such threats, emphasizing the importance of financial stability and inclusion.

The engagement, part of the central bank's regular dialogues with senior banking officials, also highlighted the need for enhancing digital literacy and customer service. Deputy Governors M Rajeshwar Rao, T Rabi Sankar, and Swaminathan J, along with executive directors responsible for regulation, participated in the discussions that follow up a previous meeting held in July.

Focusing on IT risk management, Governor Malhotra underlined the importance of scrutinizing third-party providers to safeguard against cyber threats. He encouraged a collaborative approach between the RBI and banks to streamline business processes. The dialogue comes as Malhotra, an engineer and public policy expert, embarks on his tenure as Governor, having been appointed in December 2024.

(With inputs from agencies.)