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🚨 New RBI Guidelines to Prevent Financial Frauds via Voice Calls & SMS 🚨 With the increasing reliance on mobile numbers for banking and payments, fraudsters have found new ways to exploit them. To combat this, the Reserve Bank of India (RBI) has issued new regulatory measures and institutional safeguards to prevent financial frauds. 🔹 Key Directives for Banks, NBFCs & Payment Service Providers: ✔️ Use the Mobile Number Revocation List (MNRL) to clean customer databases. ✔️ Register verified customer care numbers with the DoT’s Sanchar Saathi portal. ✔️ Ensure transactional calls use ‘1600xx’ and promotional calls use ‘140xx’ numbering series. ✔️ Strengthen fraud monitoring & awareness efforts for customers in local languages. 📅 Deadline for Compliance: March 31, 2025 💡 A crucial step toward a safer digital banking ecosystem! Let’s spread awareness and stay vigilant. 📄 Read the full RBI circular in the attached document. #CyberSecurity #FinancialFraud #RBI #DigitalBanking #Fintech #Compliance

Strengthening Digital Payment Security: RBI's New Two-Factor Authentication Rules The Reserve Bank of India (RBI) has introduced a draft framework to enhance the security of digital payments through two-factor authentication (2FA), aiming to safeguard transactions and provide secure authentication options. Key Highlights of the New Framework: - Dynamic Authentication Factors: One factor must be dynamically created after payment initiation, reducing fraud risk significantly. - Broad Categories of Authentication Factors: Includes something the user knows, has, or is, like passwords, tokens, and biometrics. - Exemptions from 2FA: Certain transactions like small value contactless card payments are exempt. - Customer Consent and Real-Time Alerts: Issuers need customer consent for new authentication factors and must provide real-time alerts for transactions. - Compliance and Feedback: Providers must comply within three months and provide feedback by September 15, 2024. The RBI's framework for authentication mechanisms aims to bolster digital payment security by introducing dynamically generated factors and expanding authentication methods for a more secure and user-friendly ecosystem. Stay informed as we navigate the evolving digital payments landscape. #DigitalPayments #RBIGuidelines #TwoFactorAuthentication #Fintech #Security #Innovation #CustomerSafety #PaymentSecurity

Kotak Mahindra Bank penalised by RBI The Reserve Bank of India (RBI) has imposed restrictions on Kotak Mahindra Bank's digital onboarding and credit card issuance. This action follows concerns identified by the RBI regarding the bank's IT infrastructure and information security practices. RBI mentions, "...the bank’s Core Banking System (CBS) and its online and digital banking channels have suffered frequent and significant outages in the last two years, the recent one being a service disruption on April 15, 2024. The recent action by the Reserve Bank of India (RBI) against Kotak Mahindra Bank , targeting its digital operations, notably its Kotak 811 platform, has raised significant concerns within the banking industry. The regulator stated,"...Serious deficiencies and non-compliances were observed in the areas of IT inventory management, user access management, vendor risk management, data security, and data leak prevention strategy. About bank - kotak mahindra bank was the first bank in India to enroll people digitally, and as of 2018, it is working towards an AI-enriched app, biometric-enabled branches, context-enhanced customer experiences and data empowered design of products and services. Solutions what I think they can do is :- 1)Investing in Security Technologies: Upgrading IT infrastructure and implementing advanced security solutions like firewalls, intrusion detection/prevention systems, and data encryption would have strengthened SBI's defenses. 2)Proactive Approach: SBI might have adopted a proactive approach to cybersecurity, conducting regular security assessments and penetration testing to identify and address vulnerabilities before they were exploited. This would position them well to meet RBI expectations. 3)They have to work on physical presence in the market to be in the commpitation.#KotakSecurityUpgrade #RBIGuidelines #CybersecurityForBanks #ProtectingCustomerData #DigitalBankingSafety #BuildingTrustInFintech #DemandBetterSecurityKotak #RBIHoldKotakAccountable #KotakGetsSecure #RBIApprovesKotakSecurity #SaferBankingWithKotak #KotakPrioritizesSecurity #DigitalTrustRestored

The Reserve Bank of India's (RBI) draft framework for alternative authentication mechanisms in digital payments is a crucial advancement in securing the digital payment ecosystem. By requiring an additional factor of authentication (AFA) for most transactions, the RBI aims to reduce fraud and ensure user safety. The practical exemptions for small-value contactless payments and certain recurring transactions strike a balance between security and convenience. The requirement for dynamically created authentication factors addresses evolving security threats. With its focus on real-time alerts and non-exclusivity with service providers, this framework promises a safer and more transparent payment environment. https://lnkd.in/gM4kMdy9 #Finance #Banking #DigitalPayments #FinancialTechnology #Fintech #RBI #Authentication #Cybersecurity #PaymentSecurity #DigitalSecurity

Digital Banking in India: Navigating the Evolving Regulatory Landscape The Indian digital banking space is booming, offering convenience and accessibility to millions. But with this growth comes the crucial aspect of ensuring compliance with the Reserve Bank of India's (RBI) regulations. Below are some key areas of focus for RBI compliance in digital banking: 1) Customer Protection: RBI prioritizes safeguarding customer interests. This includes robust KYC (Know Your Customer) procedures, data security protocols, and fair lending practices. 2) Cybersecurity: Digital channels are vulnerable to cyber threats. The RBI mandates stringent security measures like data encryption, multi-factor authentication, and regular system audits. 3) Transparency & Disclosure: Clear communication regarding charges, interest rates, and terms & conditions is essential. Staying compliant isn't just about ticking boxes. It's about building trust and fostering a secure digital banking ecosystem for all. #DigitalBanking #RBI #Compliance #FinancialInclusion

‼️Alert‼️ *More than 200 small #banks of #India have been affected due to #ransomware #attack that targeted service provider #C-Edge Tech.* A ransomware attack on C-EDGE #Technology, a prominent banking and #finance #software #company in India, has resulted in the temporary suspension of payment services for approximately 300 small #Indian banks. C-Edge is a joint venture between #Tata #Consultancy Services Ltd. (#TCS) and State Bank of India (#SBI) to provide transformative capabilities to the Indian financial services and emerging markets by addressing critical #technology requirements of this #industry. The #incident was reported recently and news surfaced within the last two hours. References: https://lnkd.in/dpJ8bBmd https://lnkd.in/dYhACiB7 https://lnkd.in/dxhgvP5t https://lnkd.in/dTy6Vj44 #Made4Security

*Frozen & Inactive Bank Accounts* Go to 🏠 rbicompliance.com 1. 👁️🗨️ The banks are advised by the RBI to take necessary steps urgently to bring down the number of inoperative/frozen accounts and make the process of activation of such accounts smoother and hassle free, including by enabling seamless updation of #KYC through mobile/internet banking, non-home branches, Video Customer Identification Process, etc. While the accounts of beneficiaries of various Central/State government schemes like DBT/EBT etc., are required to be segregated to facilitate uninterrupted credit of such DBT/EBT amounts in their accounts, instances have been observed where the accounts of such beneficiaries have been frozen due to other factors such as pending updation/ periodic updation of KYC. *Since these accounts mostly pertain to the people from the underprivileged sections of the society,* the banks may facilitate the process of activation of accounts by taking an empathetic view in such cases. The banks may also organise special campaigns for facilitating activation of inoperative/ frozen accounts. Besides, the banks may also facilitate Aadhaar updation for customers through the branches providing Aadhaar related services. 2. 👁️🗨️ The progress in reduction of inoperative/ frozen accounts and the special efforts made by the banks in this regard, may be monitored by the Customer Service Committee (CSC) of the Board. In addition, the banks are also advised to report the same on a quarterly basis to the respective Senior Supervisory Manager (SSM) through the #DAKSHportal, starting from the quarter ending December 31, 2024. Excerpt from the RBI circular - RBI/2024-25/91 DoS.CO.PPG.SEC.12/11.01.005/2024-25 dated December 02, 2024. Cybercrime 🪀 https://lnkd.in/dA8swGJ5 #FrozenBankAccount #KYCproblem #RBIcompliance #DormantAccount #OZGiAN #AccountFreeze

🔐 RBI Proposes Dynamic Authentication for Digital Transactions 🔐 The Reserve Bank of India (RBI) has unveiled draft guidelines to enhance digital payment security by introducing an additional dynamic factor of authentication (AFA). This ensures that passwords or PINs are time-sensitive, initiated during transactions, and non-reusable. Key Points: 1. Dynamic Authentication: Transaction-specific, time-sensitive passwords/PINs. 2. Compliance Deadline: Three months for banks and payment providers. 3. Exemptions: Small value, recurring, and offline transactions. 4. Real-time Alerts: Issuers to alert customers for eligible transactions. This initiative aims to curb fraud and enhance user security in digital payments. #RBINews #DigitalSecurity #Fintech #CyberSecurity #BankingInnovation #DigitalPayments #FinancialSafety #TechInBanking #FintechUpdate #BankingNews #SecurePayments #DigitalIndia #AFAGuidelines #RBI #FEModernBFSI #FEBFSI https://lnkd.in/ghPqejNx

🔒 𝐓𝐡𝐢𝐧𝐤 𝐘𝐨𝐮𝐫 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬 𝐚𝐫𝐞 𝐒𝐚𝐟𝐞? 𝐓𝐡𝐢𝐧𝐤 𝐀𝐠𝐚𝐢𝐧! The Reserve Bank of India (RBI) has recently tightened its regulations, identifying 𝟏𝟎 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐭𝐲𝐩𝐞𝐬 𝐨𝐟 𝐭𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬 that will now be flagged as fraud. 𝐇𝐞𝐫𝐞’𝐬 𝐰𝐡𝐚𝐭 𝐲𝐨𝐮 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐭𝐨 𝐩𝐫𝐨𝐭𝐞𝐜𝐭 𝐲𝐨𝐮𝐫𝐬𝐞𝐥𝐟 𝐚𝐧𝐝 𝐲𝐨𝐮𝐫 𝐟𝐢𝐧𝐚𝐧𝐜𝐞𝐬: 𝟏. 𝐔𝐧𝐚𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐞𝐝 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬: Any digital activity conducted without your consent. 𝟐. 𝐏𝐡𝐢𝐬𝐡𝐢𝐧𝐠 𝐚𝐧𝐝 𝐕𝐢𝐬𝐡𝐢𝐧𝐠 𝐒𝐜𝐚𝐦𝐬: Transactions resulting from deceptive emails or calls. 𝟑. 𝐀𝐜𝐜𝐨𝐮𝐧𝐭 𝐓𝐚𝐤𝐞𝐨𝐯𝐞𝐫: When someone unauthorized gains control of your account. 𝟒. 𝐂𝐚𝐫𝐝 𝐒𝐤𝐢𝐦𝐦𝐢𝐧𝐠: Illegally copied card information leading to unauthorized use. 𝟓. 𝐈𝐝𝐞𝐧𝐭𝐢𝐭𝐲 𝐓𝐡𝐞𝐟𝐭: Fraudulent use of your personal information. 𝟔. 𝐒𝐨𝐜𝐢𝐚𝐥 𝐄𝐧𝐠𝐢𝐧𝐞𝐞𝐫𝐢𝐧𝐠: Being tricked into revealing confidential information. 𝟕. 𝐌𝐨𝐛𝐢𝐥𝐞 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐅𝐫𝐚𝐮𝐝: Unauthorized transactions via mobile banking apps. 𝟖. 𝐀𝐓𝐌 𝐅𝐫𝐚𝐮𝐝𝐬: Scams like card trapping or ATM skimming. 𝟗. 𝐔𝐧𝐚𝐮𝐭𝐡𝐨𝐫𝐢𝐳𝐞𝐝 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬 𝐛𝐲 𝐓𝐡𝐢𝐫𝐝-𝐏𝐚𝐫𝐭𝐲 𝐀𝐩𝐩𝐬: Activities done through apps without your consent. 𝟏𝟎. 𝐅𝐫𝐚𝐮𝐝𝐮𝐥𝐞𝐧𝐭 𝐋𝐨𝐚𝐧 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: Loans taken without your knowledge or approval. These new rules underscore the importance of vigilance in our digital age. Protect your assets by staying informed and cautious. Stay safe, stay aware. #RBI #FinancialSecurity #FraudPrevention #DigitalSafety #StayVigilant

The Reserve Bank of India’s recent measures to strengthen the Aadhaar Enabled Payment System (#AePS) are a significant leap forward in enhancing financial security and inclusion. By streamlining the onboarding process and enforcing stringent due diligence for AePS Touchpoint Operators, the Reserve Bank of India (RBI) is taking crucial steps to reduce fraud and protect customers from identity theft. The RBI’s initiative to set transaction limits based on the risk profile of each operator further ensures a secure transaction environment. Additionally, if an operator hasn’t conducted a single financial transaction for six months, their KYC must be updated. Ongoing monitoring of AePS touchpoint operators by acquiring banks is also essential to maintain system integrity. I believe these measures will restore trust in AePS, enabling millions of Indians to access reliable and secure financial services. At Spice Money, we are committed to aligning with the RBI’s mission. We have introduced trusted device authentication, geo-fencing, and real-time fraud monitoring to enhance the safety of AePS ecosystem. https://lnkd.in/dUPeaBHR Ramesh Venkataraman Venkatram Jayanthy Rashmi Aggarwal CA. SUNIL KAPOOR MRUTYUNJAY MAHAPATRA Ram Rastogi 🇮🇳 Rohit Ahuja Harsh Mittal sameer nagpal Usha Murali Kuldeep Pawar Atul Tiwari #FinancialInclusion #RuralFinance #Fintech #SpiceMoney #DigitalPayments #RuralFintech #NewIndia #EmergingIndia