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Banks to set up portal with real-time information to handle digital frauds

August 30, 2023

Banks to set up portal with real-time information to handle digital frauds
Banks are planning to set up a common negative registry of fraudsters to provide real-time information to all banks to prevent digital fraud.

A senior bank executive said that the portal will help lenders connect and stop and trace funds being transferred from one account to multiple accounts.
 
The bank executive said, “In most cases of digital fraud, money is transferred into multiple accounts spread across various banks and financial entities. This becomes too difficult to trace at times, leading to delays. The portal will put an end to these issues.”
 
He added that deliberations are on to find synchronisation between the online dispute resolution (ODR) by the RBI and the unified dispute and issue resolution (UDIR) provided by the National Payments Corporation of India.
 
During 2022-23, public sector banks reported 3,405 frauds involving ₹21,125 crore, while private banks reported 8,932 cases involving ₹8,727 crore. This is for fraud involving ₹1 lakh and above, according to the ET report.
 
Another bank executive said that a standard operating procedure (SOP) is being prepared to stop unauthorised transactions mid-way.
 
“If all stakeholders are following the same process, it will be faster to address such fraudulent transactions,” he said.
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