payment frauds

RBI has mandated all authorised payment system operators and participants to undertake multi lingual campaign by way of SMS, advertisements, in print and visual media etc. to educate its users on safe and secure use of digital payment systems.

This is in view of the increasing instances of frauds taking place in the digital banking space due to the ignorance and gullibility of digital payment users like sharing OTP, PIN, passwords, swapping sim cards, opening links received in messages and mails, downloading spurious apps etc.

Gist of RBI circular dated 22nd June 2020 is given below:

As you are aware, safety and security of digital transactions are of paramount importance. Reserve Bank has been taking measures to improve awareness through its e-BAAT programmes and organising campaigns on safe use of digital payment modes, to avoid sharing critical personal information like PIN, OTP, passwords, etc.

2. Inspite of these initiatives, incidence of frauds continue to bedevil digital users, often using the same modus operandi users were cautioned about, such as luring them to disclose vital payment information, swapping sim cards, opening links received in messages and mails, etc. There are also cases of users being tricked into downloading spurious apps that access critical information stored on devices. It is, therefore, essential that all payment systems operators and participants ā€“ banks and non-banks ā€“ continue and reinforce efforts to spread awareness about digital safety.

3. All authorised payment systems operators and participants are hereby advised to undertake targeted multi-lingual campaigns by way of SMSs, advertisements in print and visual media, etc., to educate their users on safe and secure use of digital payments.

Copy of RBI circular can be found here

This is a good move by the RBI in this regard.

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