Even as various elements are active in exploiting lack of awareness among common man to siphon off money from their bank accounts, the Reserve Bank of India asserted that being the owner of enforcement agencies, the State Government has more responsibility in preventing financial crimes compared to the role of regulatory bodies like
the Central bank.
Financial crimes have left hundreds of bank consumers and people with no financial literacy on their own in the absence of any pre-emptive measures on the part of financial institutions and the government agencies.
“I won’t criticise the State government because their hands are quite full. But, of course government has got a greater role to play. Regulators’ role is very limited but enforcements is not with us. The police are with government,” said Regional Director of RBI, Patna, MK Verma.
The Regional Director added that the RBI collects information about any non-incorporated entity doing business without proper license and passes on the information to the economic offences wing for further action. Notably, there is a coordination committee in each state to prevent financial frauds represented by State Government, RBI, Securities and Exchange Board of India, Registrar of Companies, police officials, Insurance Regulatory and Development Authority of India and other stake holders with knowledge of financial instruments.
“Education and prosecution has to go together. We are doing both,” maintained Verma.
Verma also stressed on following protocol on the part of consumers and refrain from making disclosures that are meant to be kept secret as he expressed helplessness of financial institutions on that front. As financial crimes are getting sophisticated with each day, sensitising students to create a responsible consumer base in the society would be the emphasis of the bank to make electronic banking safe.
“Internet frauds are taking place because we are not following protocols and discipline. We need to understand it first and then there is a need to implement those. We keep telling people dos and don’ts so that banking should be safe,” signed off Verma.
While addressing the students of Indian Institute of Management, Ranchi on Wednesday, the RBI’s regional head admitted that banking awareness has been very low among consumers in eastern part of the country. He also stressed on developing alternate delivery channels for banking needs in the eastern states.
, affected households in the area have been asked to shift to the nearby government school as precautionary measure.
nk of constable be replaced with that of ‘civil police officer’ (CPO).