RBI's Deputy Governor, Rajeshwar Rao, stressed the critical need for banks to prioritize cybersecurity and prevent cyber fraud to protect their customers from the increasing incidents of fraud and data breaches.
In his address at the FIBAC 2023 conference, Rao highlighted the rapidly evolving banking landscape, emphasizing the rise in financial inclusion, customer access, product diversity, and convenience. However, he also acknowledged the heightened risks faced by consumers, citing the surge in frauds and data breaches.
Rao outlined various technological threats faced by bank customers, including fraudulent apps, privacy breaches, deep fakes, and the emergence of digital mis-selling termed as "Dark Patterns." These deceptive design interfaces manipulate user behavior, posing risks like high-cost short-term consumer credit disguised as instant loans. He urged collective efforts to shield customers from these threats to bolster trust.
Furthermore, Rao stressed the necessity of an efficient grievance redress mechanism to safeguard customers' interests. He expressed concern that despite technological advancements, banks' efforts in resolving customer grievances promptly haven't matched the pace of technological evolution. He urged banks to prioritize improving grievance redress mechanisms and focus on quality instead of solely tracking Turnaround Time (TAT) and Complaint Management Information Systems (MIS).
Rao emphasized the importance of empathy in banking services, advocating for special care towards senior citizens, individuals with special needs, and those less proficient with technology. He urged banks to ensure user-friendly access points and platforms for customers with diverse needs, calling for a cultural and attitudinal change within the banking fraternity.
From a regulatory standpoint, Rao assured that the RBI is actively engaging with the industry on these matters. However, he emphasized the need for a deeper cultural shift within the banking sector towards customer-centricity, empathy, and technological inclusivity.
(With Agency Inputs)
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