Reserve Bank of India (RBI) Governor Sanjay Malhotra has sent out a clear message to banks and financial institutions: rules should not be followed just on paper, but in their true spirit.
Speaking at an event in Mumbai on Friday, he highlighted growing concerns around digital fraud and called it a serious challenge for the entire country.
He stressed that tackling this issue cannot be done alone.
Banks, regulators, and other financial players must work together to control rising fraud in the digital space.
Digital Banking: Convenience Comes With Risks
The RBI Governor acknowledged that digital banking has made financial services more accessible and faster for people across the country.
Opening accounts, making payments, and accessing services has become much easier through digital platforms.
However, he warned that these benefits can turn into problems if proper safeguards are not in place.
Issues like weak security systems, hidden charges, lack of transparency, and unfair debt recovery practices can harm customers and reduce trust in banks.
How RBI Plans to Strengthen Bank Monitoring
Malhotra pointed out that while digitisation has expanded banking operations, it has also increased risks.
To deal with this, he suggested stronger coordination among banks to quickly identify mule accounts and suspicious transactions.
He also emphasized the responsible use of data and technology.
According to him, banks should adopt systems that allow continuous monitoring, ensuring problems are detected early and corrective action is taken in time.
The RBI’s message is clear: technology should improve banking, not create new risks—and accountability must grow along with digital expansi
