Civil society forum seeks information security audit for banks from RBI guv

In the wake of multiple instances of online bank fraud through misuse of biometrics data contained in Aadhaar cards, a civil society forum in Kolkata has appealed to Reserve Bank of India (RBI) governor Shaktikanta Das to introduce an information security (IS) audit system for banks.

In its communique to the RBI governor, the Bank Bachao Desh Bachao Manch, a forum representing various sections of civil society, has sought the appointment of independent IS auditors for all banks.

According to the communique, the appointment of independent IS auditors to conduct in-depth investigations in all the banks with mobile banking apps will enable unearthing of facts so that the entire industry is sensitised to the safety of customers’ deposits.

The forum has requested that the setting of any targets for branch functionaries which could force them to adopt malpractices to achieve them should be prevented by issuing instructions to all banks.

The forum has also appealed to the apex bank governor to instruct all banks to investigate the operations of business correspondents to detect malpractices if any, such as substitution of biometric details of customers at the time of opening accounts.

In the communique, the forum has argued that one of the major factors propelling rampant bank fraud through misuse of Aadhaar-related biometrics is the drive initiated by various banks to onboard customers on mobile banking apps through business correspondents as well as employees.

This, according to the forum, has resulted in customers losing substantial amounts through fraud.