Digital Fraud Surge: Challenges and Insights from RBI Deputy Governor

In a detailed address at an SBI event, RBI Deputy Governor T Rabi Sankar brought attention to the alarming rise in digital frauds since July this year, following a period of decline. He outlined the need for understanding the seasonal or cyclical nature of this increase.

Sankar identified the structural vulnerabilities of banks, emphasizing that outdated IT systems pose a significant challenge in adapting to rapid fintech advancements. He urged banks to modernize their infrastructures to remain competitive.

Highlighting potential threats, Sankar pointed out the existential risks posed by private digital currencies to banks, while also stating the transformative effects expected with the introduction of CBDCs. A strategic approach is required to navigate these evolving financial landscapes.