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RBI Pushes for Faster Fraud Resolution
Reserve Bank of India Deputy Governor T. Rabi Sankar flagged a critical need for banks to expedite the resolution of customer fraud complaints. Addressing the Indian Banks' Association conference in Mumbai on January 9, Sankar suggested that India explore adopting models from other jurisdictions where customers receive upfront compensation upon reporting fraud. This approach aims to alleviate the financial distress experienced by victims while investigations are ongoing.
Balancing Technology with Processes
Sankar emphasized that despite significant improvements in fraud detection and monitoring capabilities driven by technology, these advancements must be supported by strong institutional frameworks. "Technology itself will enable all of us, but we have to have systems that follow up effectively in every aspect," he stated. He cautioned that technology alone cannot fully address the escalating challenge of fraud, particularly as digital transactions continue to surge across the nation.
Positive Trends Amidst Concerns
While addressing the issue, Sankar noted a positive trend in the overall numbers of fraud within payment systems. He specifically pointed out that card-related fraud, once a significant concern, has shown a downward trajectory. However, this statistical improvement does not diminish the urgency for more effective and victim-centric processes in handling reported incidents. The push for upfront reimbursement is seen as a crucial step towards enhancing customer confidence in the digital payment ecosystem.