‘Framework actively working to check financial frauds’


Allaying security concerns over payment gateways in India in the wake of rapid digitisation of financial services, the Deputy Director General of Department of Telecommunication (DoT), G Nagendra Nath today said there is a framework actively working to check financial frauds.

Addressing reporters at the Financial Inclusion Global Initiative (FIGI) here, he said financial fraud leads to trust deficit.

Considering the volume of transactions on the digital platform, a slew of directions have been issued by the Reserve Bank of India to make the payment gateways safer, he said.

Nath said a committee of Chief Ministers looking into the digital payment systems has recommended that India have a separate body to examine the security aspect.

There, however, are two sub-groups working on the security of these payments one to look after how to make the process robust and to see that the security aspect is taking care of, and the other one looking at the underlying technology.

“These two committees are actively working on that and shortly they will come out with reports. After examining those reports, a combined report will be submitted to the government.

He said RBI had come out with comprehensive guidelines on securities in 2016 to ensure secure transactions.Similarly, DoT through the licence conditions incorporated security related clauses, which talked about steps to be taken to check financial frauds, the officer added.

“There is a framework in the country that is actively working and we also have these companies and rigorous examination because of evolution of technology that is happening. New financial products are coming in. There is continuous evaluation of situation at any particular time is well in place,” said Nath.

He said the government recently came out with an amendment of rules, where tampering with IMEI (International Mobile Equipment Identity) is a cognisable offence.

FIGI is a partnership project with the World Bank, the International Telecommunication Union and CPMI, with support from the Bill and Melinda Gates Foundation.

This is the first FIGI symposium in Bengaluru.

It aims at holding two more similar symposia in the next two years. FIGI intends to bring the deprived people in these countries in the financial system through digital financial services.