In a recent announcement, it was revealed that a staggering number of cyber fraud cases were registered in 2021. According to data from the National Crime Records Bureau (NCRB), a total of 14,007 cyber fraud cases were reported in the year 2021. This includes various forms of fraud committed through online apps. The figures provided by Minister of State for Finance Bhagwat Karad during a parliamentary session shed light on the growing concern surrounding cybercrime in the country.
Regulatory Guidelines on Digital Lending
To address the rising number of cyber fraud cases and protect consumers, the Reserve Bank of India (RBI) introduced regulatory guidelines on digital lending on September 2, 2022. The primary objective of these guidelines is to establish a firm regulatory framework for digital lending while enhancing customer protection and ensuring the safety and reliability of the digital lending ecosystem. The guidelines aim to ensure that lending activities are carried out only by entities that are either regulated by the RBI or authorized by other relevant laws.
Compliance and Oversight
All regulated entities (REs) are required to comply with the guidelines on digital lending set forth by the RBI. The compliance of these guidelines is examined through supervisory assessments, with particular attention given to sample cases. Any instances of non-compliance are addressed through rectification measures and, if necessary, supervisory or enforcement actions are initiated.
It is worth noting that the Enforcement Department of the RBI has not imposed any monetary penalties on regulated entities for non-compliance with the guidelines on digital lending issued on September 9, 2022. This suggests that the focus is primarily on rectifying any non-compliance rather than imposing financial penalties.
Addressing Unclaimed Deposits
In response to another question, Minister Bhagwat Karad highlighted the “Depositor Education and Awareness Fund Scheme, 2014,” which was introduced by the RBI. This scheme aims to address the issue of unclaimed deposits and outlines the utilization of the fund. As a result of various initiatives undertaken to return unclaimed deposits to their rightful owners, a significant amount of Rs. 5,729 crore has been transferred from the fund to banks over the past five years.
To further address this issue, the RBI has launched the “100 Days 100 Pays” campaign. This initiative aims to facilitate the tracing and settlement of the top 100 unclaimed deposits of every bank in every district of the country within 100 days. The campaign, which commenced on June 1, 2023, and will run until September 8, 2023, demonstrates the commitment of the RBI to ensure the return of unclaimed deposits to their rightful claimants.
The alarming rise in cyber fraud cases has prompted the implementation of regulatory guidelines on digital lending by the RBI. The objective is to create a secure and reliable digital lending ecosystem while safeguarding the interests of customers. Compliance with these guidelines is closely monitored, and non-compliance is addressed through rectification measures and potential enforcement actions. Additionally, efforts are being made to address the issue of unclaimed deposits, with significant funds already being returned to banks. The “100 Days 100 Pays” campaign further demonstrates the commitment of the RBI to resolve this issue and ensure the rightful owners receive their deposits.
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