At the recent FICCI-IBA conference and FIBAC 2023 on Thursday, RBI Deputy Governor M. Rajeshwar Rao highlighted the importance of banks improving their customer grievance mechanisms in light of increasing cyber frauds and data breaches. He urged banks to adapt to the rapidly evolving banking-as-a-service (BaaS) landscape that includes a variety of non-bank players.
Rao identified five key pillars for a resilient financial system: strong governance and management, sound regulations, sufficient capital and liquidity, effective risk management and supervision, and robust crisis management plans. He warned that without efficient management, leveraged entities like banks could face catastrophic outcomes.
He drew attention to the growing prevalence of technology-induced frauds such as fraudulent apps, privacy intrusions, deepfakes, and deceptive practices known as ‘Dark Patterns’ used in digital mis-selling. He particularly spoke against these ‘Dark Patterns’ that lead consumers to high-cost credit, impacting trust retention and strengthening. Rao stressed that while banks are the primary drivers of India’s economy, they must integrate technological innovations with care by conducting…
