Debar fraudsters from all banking transactions: RBI deputy governor

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Reserve Bank of India's Deputy Governor KC Chakrabarty said banks should make the life of fraudsters difficult by debarring them from conducting any banking transaction.

Addressing the ASSOCHAM conference on 'Financial Frauds: Risk & Prevention', Chakrabarty said, "Establishment of a Fraud Registry on the lines of credit information bureau could be considered."

He highlighted that there is inadequate flow of information between two banks regarding the credibility of an account. "One bank reports the case as fraud but other banks with similar deficiencies in the same account continues to treat the account as performing", he stated at the conference.

"When time is good rich people steal, when time is bad, bad people steal," he added.

ASSOCHAM President Rana Kapoor said, "We must have zero tolerance for frauds. We need actionable measures by improving financial literacy in our country so prevent gullible customers falling prey to frauds like Ponzi schemes. Equally, may frauds also happen due to principal-agency interaction, hence educating line employees to ensure 100 per cent compliance and zero tolerance to non-compliance is most crucial."

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Story first published: Friday, July 26, 2013, 22:50 [IST]
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