Finance Ministry calls meet to discuss digital payment fraud, cyber security

The Finance Ministry has called a meeting of senior bankers and RBI representatives on Tuesday to discuss steps to deal with increasing digital payment fraud and cyber security issues. The meeting, to be chaired by the Financial Services Secretary, will discuss issues related to financial cyber security and increasing digital payment fraud, sources said.

Indian Cyber Crime Co-ordination Centre to Make Presentation

During the meeting, the Indian Cyber Crime Co-ordination Centre will make a presentation on the latest statistics of digital payment frauds as reported in the National Cyber Crime Reporting Portal (NCRP), including challenges and issues faced in countering such issues. The meeting is expected to be attended by senior officials of the Department of Economic Affairs, Department of Revenue, Department of Telecom, Ministry of Electronics and Information Technology (MeitY), Telecom Regulatory Authority of India, and National Payments Corporation of India.

Meeting Assumes Significance in View of Recent Digital Frauds

The meeting assumes significance in view of the digital fraud witnessed by UCO Bank and Bank of Baroda in the recent past. Earlier this month, Kolkata-based public sector lender UCO Bank reported the erroneous credit of Rs 820 crore to account holders of the bank via Immediate Payment Service (IMPS). During November 10-13, the bank observed that due to technical issues in IMPS, certain transactions initiated by holders of other banks resulted in credit to the account holders in UCO Bank without the actual receipt of money from these banks.

IMPS is a Real-Time Interbank Electronic Funds Transfer System

IMPS is a real-time interbank electronic funds transfer system without any intervention. The bank blocked the recipients' accounts and has been able to recover Rs 649 crore of the Rs 820 crore, or about 79 percent of the amount. The state-owned bank is yet to clarify whether this technical glitch was due to human error or a hacking attempt. However, the bank has reported the matter to the law enforcement agencies for necessary action.

The meeting called by the Finance Ministry is a significant step towards addressing the increasing concerns over digital payment fraud and cyber security issues. The participation of senior officials from various departments and organizations will help in formulating a comprehensive strategy to combat these challenges and ensure the safety and security of digital financial transactions.