RBI Governor Sanjay Malhotra flagged the rise in digital frauds and urged banks to put in place robust and proactive systems to thwart such attempts.

Malhotra, in his first meeting with bank chief executives, also advised banks to enhance their oversight of third-party service providers to mitigate risks. 

Also present in the meeting were RBI deputy governors M Rajeshwar Rao, T Rabi Sankar and Swaminathan J, along with executive directors in charge of regulation and supervision.

Malhotra asked banks to ensure financial stability, deepen financial inclusion, improve digital literacy, enhance availability and affordability of credit, strengthen customer service and grievance redress mechanism, and continue to invest in technology.

Malhotra also asked banks to enhance oversight over third party service providers for mitigating risks emanating on IT and cyber security. 

“The need for RBI and banks to work together closely was emphasized and suggestions were sought from the banks on enhancing the ease of doing business,” the central bank said in a release.

The meeting on Monday was part of RBI’s continuous engagement with the senior management of its supervised entities. The previous such meeting was held on 3 July 2024.