Home
/
Articles
/
RBI Annual Report FY24: What caught our attention?

RBI Annual Report FY24: What caught our attention?

Banking
Author
Rahi Bhattacharjee
Rahi Bhattacharjee

May 31, 2024

Expert
Rahi Bhattacharjee
Rahi Bhattacharjee

June 4, 2024

RBI’s annual report had terrific insights into our current fraud and risk management in the digital payments and lending space. Notably,

  • Bank fraud in India has risen by 166% to over 36,000 cases 
  • Online frauds surged 334% YoY to 29,082 in the FY24 

We could attribute these to: 

  1. Lax account opening procedures: The drive for banks and fintech companies to expedite new account openings has inadvertently made it easier for fraudsters to exploit the system at scale.
  2. Advanced fraudster tech stack: Increasing sophistication in fraudsters' technology has led to more frequent and large-scale data breaches and skimming of credit card data.
  3. Lagging cybersecurity awareness: Cybersecurity awareness and safe banking practices have not kept pace with the rapid adoption of digital payments, leading to a surge in OTP frauds through phishing and social engineering tactics.

A cautiously optimistic approach:  

The data does have some shock value to it. The report reveals a significant time lag between fraud occurrence and detection, indicating actual damages are likely higher but undetected.

But here’s the positive. Anil Tadimeti, our Director of Strategy noted how "The detailed breakdown of the types of fraud and the financial damages incurred year-over-year underscored RBI’s commitment to implementing more stringent reporting norms across the ecosystem"

The report also highlights the RBI’s agenda toward a safer digital world which includes: 

  • Enhancing the cyber incident response capability of Scheduled Commercial Banks (SCBs) 
  • Rolling out alternate risk-based authentication mechanisms leveraging behavioural biometrics, location/ historical payments, digital tokens, and in-app notifications
  • A gradual introduction of real-time payee name validation before the actual fund transfer 
  • Facilitating the development of RegTech tools for adoption by REs and exploring the identification of emerging SupTech tools that leverage ML/AI 
  • Implementing awareness and consumer training programs across diverse demographics 

The RBI has consistently strived to implement critical proactive measures powered by new-age technologies to tackle this hydra-headed monster of online financial fraud. 

And Bureau is honoured to offer our dynamic services, including advanced device intelligence, behavioural biometrics, and comprehensive risk assessments, to strategically support the collective vision of a financial ecosystem based on digital trust. 

Schedule a free consultation with us

You might also like

Learn More

See How Bureau Can Help Fight Fraud
Talk To Us