The Reserve Bank of India has recently exercised its powers vested with it under the the Banking Regulation Act, 1949 and has imposed monetary penalties of Rs.55 lakh on ING Vysya Bank Ltd. and Rs.30 lakh on ICICI Bank Ltd., The penalties have been imposed on these banks for contravention of various directions and instructions issued by the RBI on ‘Know Your Customer (KYC) norms/Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)/Prevention of Money Laundering Act, 2002.
→ Read More: Two big private banks fined for not maintaining KYC
The banks have done away with the cash retraction system in ATMs. The system, which enabled the machine to take back the currency if it is not removed within a certain time, was withdrawn recently after the Reserve Bank of India (RBI) agreed to National Payments Corporation of India’s proposal for removing the feature from all ATMs to deal with the increasing number of fraudulent claims about non-receipt of cash. The end result of this practical approach is encouraging.
→ Read More: ATM cash retraction in India is a history now
I am excited about the success of this device called SQUARE……this is a card reader used as card acceptance device on mobile. It is said that more than 2 millions customers of US already use this device for payment acceptance. In India also, couple of similar card → Read More: Square Card Reader ties up with Starbucks
There are many ways of promoting credit cards. But, I really like this unique way of advertising Credit cards. Honesty should not go unrewarded. This is the theme of selling credit cards. And this concept has been brought by National Australia Bank. Chief Executive of this Bank “Cameron Clyne” has to say about his bank in the following words….
→ Read More: Unique way of Advertisement by NAB Credit Cards
This particular incident is second from the series of my previous blog post. Every fraud incident leaves something to learn and take corrective steps. Fraud control managers sometimes wonder how new incidents are taking place when they have taken all the measures as mentioned in the fraud control book. But this must be noted that fraudsters think a step ahead than managers. And the incident mentioned in this blog will force you to re-strategies fraud control measures.
→ Read More: Insider’s hand in Credit Card fraud : Case Study No.2
The credit card is among the most significant banking innovations of our time, permitting financial institutions to substantially reach to their customers through direct channel. But the customer should be careful even before receiving a credit card as fraudulent people are every where and sometimes it is insider’s job who have their eyes on customer’s money. These insiders are very dangerous because they know the system and plan well in advance to avoid any chance of being caught by the police.
→ Read More: Insider’s hand in Credit Card fraud : Case Study No.1
It has been observed that possession of multiple credit cards have become status symbol for some people. But how many of these cardholders actually manage their credits well? Do they fall prey to impulse buying or attractive sale schemes? What their payment history tell us about their habits? Are the paying on time? These all question may arise in your mind. These days, it is not difficult to find bad credit cardholders.
→ Read More: 6 Lessons You should Learn from Bad Credit Cardholders
Mobile payment system has started making its space in Indian banking industry. In 2008, the central Bank of India(RBI) has introduced mobile money payment system related guidelines. Many banks have taken steps to serve Indian customers using power medium of mobile handset. The transfer of fund using IMPS infrastructure of NCPI is a step ahead in RBI’s futuristic planning. IMPS facilitate customers to use mobile instruments as a channel for accessing their bank accounts and put high interbank fund transfers in a secured manner with immediate confirmation message. → Read More: What is the significance of IMPS in India?
Indian economy is bleeding….not because it has financial problems, but because its economy is heavily dependent on cash. The electronic mode of payment for majority of transactions is still a distant reality. Government of India spends billions of rupees every year on printing and managing currencies and coins. While western countries have already adopted eMoney.
→ Read More: India towards cashless society….When ? How ?