Money & Banking

SBI not to carry out transactions based on emails from NRIs

| Updated on: Jan 01, 2014

While encouraging customers to make use of Net banking facility, banks have started to voice their anxiety over rising Internet-related frauds.

For instance, State Bank of India recently issued a circular asking its branches “not to carry out any financial transactions requested by NRI customers through e-mail, even if the request is made by a letter scanned as an attachment.”

An official of the bank told Business Line that the branches have since stopped entertaining requests from NRI customers. “Not only are the customers at a loss, but the bank is also losing business,” the official said.

Rising frauds The circular follows instances of fraud brought to the notice of the bank based on instructions received from registered email IDs of NRI customers. “There have been cases of accountholders disputing the transactions subsequently.”

“Fraudsters apparently hack the email accounts of customers and send fake mails for transfer of funds to other accounts, which have been disowned by the NRI accountholders subsequently,” the official said.

When Business Line asked the RBI Deputy Governor K. C. Chakrabarty why the banking regulator did not come up with any instruction on Internet-related frauds, he said: “Any fraud is a fraud. The problem is there; but it is a law-and-order issue. This has to be dealt with differently. If something goes wrong because of our policy, we will look into it. This is an L&O issue.”

Published on January 02, 2014

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