November 28th, 2014 by CHEQUEMAN
The Reserve Bank of India recently implemented many new cheque rules to handle the rise in cheque related fraud cases. Some of them has been given below:
1) SMS alerts: The RBI asked banks to send an SMS alert to both payer and drawer when the cheque is received for clearing. Till now, SMS alerts were compulsory only for debit/credit card transactions. While dealing with suspicious or cheques of high value, banks have been asked to alert the customer by a phone call and obtain confirmation from both the parties involved in the transaction. The account holder’s bank branch must also be contacted.
2) Examination of cheques: Besides sending alerts, banks have been asked to examine cheques under UV lamp. This is applicable if the cheque amount goes over Rs 2 lakh. Also, a mechanism must be put in place to ensure multi-level checking of cheques for amount over Rs 5 lakh. Banks are also required to closely monitor how money is deposited or moved out from newly opened transaction accounts.
3) KYC compliance:Â Whenever you open a new bank account, you are supposed to go through a process called Know Your Customer or KYC. It ensures that the bank verifies information about you, thus limiting fraud cases. So, the person writing the cheque will be compliant with KYC rules. The RBI now states that even the recipient should be KYC compliant.
4) CTS-2010 cheques: The use of 100% CTS-2010 compliant cheques should be ensured by the bank. As part of the Cheque Truncation System (CTS), an electronic image of the cheque is transmitted to the cheque-writer’s bank branch through the clearing house, along with other relevant information. It helps eliminate the need for physical movement of the cheque for verification. Thus the scope for fraud is reduced.
5) Cheque-handling infrastructure:Â RBI stated that high quality of equipment and personnel must be ensured for CTS-based clearing.
November 24th, 2014 by CHEQUEMAN
The Reserve Bank has asked banks to exercise caution before making payments to customers claiming funds lying idle in inoperative accounts.
“Banks are advised to invariably verify the genuineness of the transactions and ensure that the amounts paid to the customers are properly audited by the internal auditors / statutory auditors,” RBI said in a communique to banks.
It also asked banks to carry out proper due diligence in accordance with risk category of the customers before making any such payments.
The RBI directive came in the wake of rising cases where banks claimed substantial refunds from the Depositor Education and Awareness Fund, soon after transferring the amounts in the fund.
RBI said it was not clear as to how the customers or claimants, who did not operate the account for ten years or more, approached the banks for repayment immediately after the balances in their inoperative accounts were transferred to the fund.
“Banks should, therefore, follow all instructions meticulously in respect of inoperative accounts,” RBI said.
As per the RBI directive, banks have been advised to carry out special efforts to trace the customers in respect of inoperative accounts.
As per the RBI guidelines, banks are required to pay back the amounts laying in inoperative accounts for ten years or more, along with interest.
They later can lodge a claim for refund from the Depositor Education and Awareness Fund for an equivalent amount paid to the customer/depositor.
Source: Times of India
November 22nd, 2014 by CHEQUEMAN
RBI has issued a press released on 21st November 2014 in which it has cautioned customers against fraudsters issuing credit card in the banking regulator’s name and duping people. The banking regulator said the consumer is sent a credit card that allows withdrawal of money up to a certain limit, typically a small sum, from a bank account. The fraudster later gets them to deposit a huge sum of money in the same bank account. Once the money is deposited, the card stops working and the fraudster disappear.
The issued press released has been given below:
Press ReleaseÂ
Date: 21 Nov 2014
Credit Card in the name of RBI : RBI cautions Once More about the Newest Kind of Fraud perpetrated in its Name
The Reserve Bank of India today issued one more alert to the public about the newest form of fraud perpetrated in its name – a credit card issued by fraudsters in the name of the Reserve Bank. Explaining the modus operandi, the Reserve Bank stated that the gullible member of the public is sent a credit card which allows withdrawal of money up to a certain limit, albeit a small sum, from a bank account. Having gained the confidence of the victim thus, the fraudster gets him to deposit a huge sum of money in the same bank account. Once the money is deposited, the card stops working and that would also be the last time the holder of the card (victim) would hear from the fraudster.
Warning against such efforts, the Reserve Bank has reiterated that as India’s central bank, it does not carry out any business with an individual, whether through savings bank account, current bank account, credit card, debit card, online banking services or receiving and holding funds in foreign exchange or any other form of banking services. The Reserve Bank has listed out the other kind of prevalent frauds, such as:
- Fictitious offers of large sum of money/lottery winnings by email or through phone calls by posing as RBI official.
- Fake Reserve Bank website for online transactions
- Luring members of public to secure their bank accounts against such frauds by asking them to share the bank account details, including user id/password, through an email or by clicking on a link given in email.
- Offer of employment in the Reserve Bank through email
The Reserve Bank has also stated that fictitious offers are also made in the name of other public institutions, such as, International Monetary Fund (IMF), Income Tax authorities, Customs authorities or public figures like Governor, Dr. Raghuram Rajan or other senior RBI officials.
The Reserve Bank has pointed out that once the moneys are paid in fraudsters’ accounts, there are remote chances of the members of public recovering the moneys.
The Reserve Bank has once again cautioned members of public that falling prey to such offers can result in compromising one’s own crucial personal information that may be misused to cause direct financial and other loss to them. They, in their own interest, should refrain from responding to such offers in any manner. Rather, they should immediately lodge a complaint with Cyber Crime branch of the Police, the contact details of which are available in the Reserve Bank’s press release issued earlier (Complain to Local Police/Cyber Crime Authorities against Fictitious Offers of Money from Abroad).
Alpana Killawala
Principal Chief General Manager
Press Release: 2014-2015/1046
Click here to download the press release.