Data leakage rampant, guard against frauds, warns RBI at PHDCCI platform

PR No – 91

31st May, 2024

New Delhi


Data leakage rampant, guard against frauds, warns RBI at PHDCCI platform


PHDCCI, under the aegis of its Banking, Financial Services and Insurance (BFSI) Committee, launched a campaign on Thursday to raise awareness against financial frauds. The campaign is being supported by the Reserve Bank of India Ombudsman and the first Town Hall Programme on Financial Frauds & Introduction to RBI’s Integrated Ombudsman Scheme 2021 (RB-IOS 2021) was held at PHD House, New Delhi. A part of many such awareness sessions which are going to be held over the course of the next few months, the session on May 30 aimed at raising awareness about different types of financial frauds.

Providing insights into RB-IOS 2021, the programme presented a deeper understanding of consumer rights and grievance redressal mechanisms.

Present on this occasion were senior officials of RBI including Mr. Brijlal Singh and Ms Veena Rana, Deputy General Managers & Deputy Ombudsman, RBI; Ms Reena Sethi, Assistant Manager, RBI; Mr S K Sethi, Co-Chairman, PHDCCI BFSI Committee; Dr Ranjeet Mehta, Executive Director, PHDCCI; Ms Shalini S Sharma, Assistant Secretary General, PHDCCI; Ms Babeeta Sharma, Senior Secretary, PHDCCI and Mr Sanjay Ahuja, Joint Secretary, PHDCCI.

The programme saw participation in large numbers from academic institutions with ICFAI Business School Gurgaon; Galgotia University Greater Noida; K R Mangalam University Gurgaon; Indian Institute of Foreign Trade Qutub Institutional Area; Manav Rachna University Faridabad and Netaji Subhash University Technology Dwarka sending students and faculty to learn more about cyber security and financial frauds.

Mr. Brijlal Singh said that fraud is now one of the most common topics in newspapers, and everyone is vulnerable to it. The only way to protect oneself is through awareness and precautions, as fraud takes many forms and data leakage is rampant. Driven by ignorance, greed, and fear, financial fraud highlights the need for awareness programs.

During the presentation, Mr. Singh discussed that cybercrime is projected to cost the world $17.65 trillion annually by 2025, with factors like anonymity and trans-border syndicates contributing to it. He further mentioned various types of frauds such as ATM frauds, which are prevalent due to high percentage of cash transactions, and card skimming which is now mitigated to some level after introducing chip system. The cheque fraud is also addressed by the RBI’s ‘positive pay system,’ and further discussed on fraudsters employing corporate-like strategies, fake KYC updates, and advanced technology like deepfakes. Mr Singh added that it was a myth that fingerprints cannot be copied. With someone’s Aadhaar number, fingerprints can be easily duplicated and frauds committed, misusing a facility initially meant for convenience.

Mr. Singh also informed about the DoT Sanchar Saathi portal, which has had 4.15 crore visitors since its launch, and emphasised on its service, the Chakshu app, where one can report fraudulent activity immediately. He highlighted the I4C – Indian Cyber Crime Coordination Center, noting that its response is immediate and quick compared to the 30-day lag in the ombudsman process.

Digital literacy and awareness are the only solutions. Mule accounts are an issue related to KYC. Initially no one is aware of them, but they only become aware after transactions have been made. We have advised banks to monitor such accounts, concluded Mr. Singh.

Ms Reena Sethi briefed about the scheme which was inaugurated by Prime Minister Shri Narendra Modi in 2021. She gave an overview of the Ombudsman scheme, its history and mentioned that any customer aggrieved by an act or omission of a regulated entity resulting in a deficiency in service can file a complaint under the scheme personally or through an authorized representative (other than an advocate).

She further informed that ways to file a complaint include writing on plain paper and sending it to CRPC, Chandigarh, or through mail or the online portal. She added that there is no limit to the amount that can be complained about, but there is a compensation limit of ₹20 lakh for consequential loss and ₹1 lakh for mental anguish. Additionally, she discussed the national cybercrime reporting portal, which can be reached by dialing 1930.

Mr. S.K. Sethi said that greed is the  trap of any fraud. It is important to learn safe banking habits, become aware of various modus operandi used by fraudsters, and understand how to protect oneself against financial fraud while also avoiding the display of sensitive information, especially regarding banking details. Today’s program aimed to cover the digital banking landscape, types of financial frauds, and the prevention of these frauds. The purpose is to delve into safe digital banking practices and the RBI Integrated Ombudsman Scheme 2021 (RBIOS-2021). It is important to learn when and how to seek redress. Further, Mr. Sethi believed that the program would help build greater trust and confidence in the banking system.

Dr. Ranjeet Mehta shared that India is the youngest country in the world today, and the rapid pace of digital activity is remarkable. As per the data, around 6.3 million searches and 4 million messages are sent online every minute. The Digital India program launched by our Hon’ble Prime Minister Modi in 2014 was ahead of its time and proved invaluable during the COVID-19 pandemic.

Today, India is a leading nation in online transactions and digitalization. During G20, the G20 heads of state also appreciated India’s UPI, which is now accepted in many countries like France, UAE, Singapore, and Bhutan, among others. As the country advances with AI and other tools, awareness about digital fraud and crimes is essential. Understanding the Reserve Bank Integrated Ombudsman Scheme 2021 will help citizens protect themselves. PHDCCI, with its 119-year legacy, has been proud to continue promoting industry and trade and is happy to contribute further in this, added Dr. Mehta.


The programme was supported by RBI and PHDCCI’s annual partners, DLF Ltd; Jindal Steel & Power; KLJ Group; Multani Pharmaceuticals Ltd; Marble City; MMG Group; Radico Khaitan Ltd;  Uflex Ltd; Vestige; Eazy ERP Technologies; JK Tyre & Industries Ltd; Sagar Group of Industries; Superior Industries Limited; Samsung India Electronics; Oswal Greentech; Apeejay Stya Group; Blossom Kochhar Beauty Products Pvt Ltd; DCM Shriram;  R E Rogers; Trident Group; Ajit Industries Pvt Ltd;  Bhagwati Plastic and Pipes Industries; Central Coalfields Ltd; DD Pharmaceutical Ltd.;  Hindware Sanitary; Jindal Steel;  Modern Automobiles;  P S BEDI & Co


Warm Regards,

Media Division

PHD Chamber of Commerce and Industry