Strict measures have reportedly been proposed by the Finance Ministry to protect citizens from cyber fraud.
These measures came after a rise in incidents including the recent Bank of Baroda World App scam.
These measures are considered part of a broader national effort to combat cybercrime.
Only in 2023, more than 1.1 million cyber fraud cases amounting to Rs 7,488.63 crore ($8.9 billion) were recorded by India’s National Crime Records Bureau.
To deal with this growing threat, the Home Ministry established the Indian Cyber Crime Coordination Center (I4C).
To combat all types of cybercrime, this central agency coordinates efforts across the country.
The ministry has called for stricter Know Your Customer (KYC) processes and more thorough due diligence by banks and financial institutions while onboarding new merchants.
The proposal emphasizes the need for better data security and data protection practices at the merchant and BC levels.
In October 2023, state-owned Bank of Baroda was barred from onboarding new customers on its mobile app ‘BoB World’ following material supervisory concerns by the RBI.
