RBI Warns Bank Account Holders; Here’s What You Should Know

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The Reserve Bank of India which is India’s central banking institution recently sent out an SMS to the people regarding ‘fraudulent transaction in the bank account’. In the recent message, the bank informed the people that they should inform their bank immediately when they encounter an illegal transaction from their bank account.

According to the message by Reserve Bank of India, people are advised to give a call on ‘14440’ for more information on the serious subject. RBI is the banking institution which controls the monetary policy of the Indian currency like regulating the issue of Indian currency and is the one responsible for maintaining the monetary stability in India, operating the currency and the credit system in India.

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Apart from this, Reserve Bank of India has set some compliance timelines to deal with the slow progress made by banks to solve the security concerns around automated teller machines or the ATMs. Any delay or no effective compliance with the instructions may invite “appropriate supervisory enforcement action”.

The slow progress made by the banks to solve this problem has been viewed seriously by the RBI as the automated teller machines or the ATMs running on the unsupported version of the operating system or no security measures can affect the interests of customers of various banks.

To deal with these issues quickly, banks have been advised to initiate immediate action and has asked to implement control measures as per the guidelines by RBI. By August 2018, the banks have to complete first set of security measures which include Basic Input Output System (BIOS) password, disabling USB ports, disabling auto run facility, applying the latest patches of the operating system and other software, terminal security solution and time-based admin access.

 

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The lenders have to implement an anti-skimming and whitelisting solution till March 2019. All the ATMs will be upgraded with supported versions of the operating system in a phased manner. The central bank mentioned that many ATMs were still running on Windows XP and other unsupported software. As per the banking industry sources, there are 30% of the present 2.2 lakh ATMs that still use old software.

Apart from this initiative, Reserve Bank has also indicated to the finance ministry that its February 12 circular on the new framework for stressed assets has enough space for resolution of bad loans in the power sector. According to RBI, the circular does not stop the restructuring and if there is default the restructuring is possible within the fixed time frame available. In case of a default on large accounts of Rs 2,000 crore and above, the circular requires banks to finalize a resolution plan within the time period of 180 days.

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