Page 11 - Banking Finance February 2022

RBI CORNER

"The department will also provide a of the pandemic in the economic as on Friday issued a public notice asking
further framework for further research well as health sector. C.D. Deshmukh people to follow safe digital banking
on the subject that can aid policy inter- was the first Indian Governor of RBI practices to prevent any possible finan-
ventions by the Bank. Accordingly, all during 1943-49 period. cial loss.
matters related to the facilitation of
The RBI's response starting from Observing that unscrupulous elements
constructive innovations and incuba-
within a week of WHO declaring Covid- are defrauding people by using innova-
tions in the fintech sector, which may
19 as the global pandemic in 2020 and tive modus operandi, including social
have wider implications for the financial
its impending impact across the world media techniques and mobile phone
sector/markets and falling under the
had been passionate woven around calls, the RBI urged the members of
purview of the Bank, will be dealt with self-belief and resilience of the Indian public to take all due precautions while
the Fintech Department. All matters economy. Over 100 conventional and carrying out digital financial transac-
related to inter-regulatory coordination above the board measures had been tions.
and internal coordination on fintech initiated to structure the institutions
shall also be dealt with by the Depart- and financial markets since March 27, "… the Reserve Bank cautions members
ment," the circular read further. 2020, Mr. Debabrata Patra responsible of public to be aware of fraudulent
messages, spurious calls, unknown links,
for monetary policy, financial markets,
RBI measures helped In- deposit insurance in RBI said. false notifications, unauthorised QR
codes, etc. promising help in securing
dian economy step out of Dwelling into the actions of banking concessions/ expediting response from
oblivion regulator during the pandemic, he said banks and financial service providers in
the focus was on mitigation of sector- any manner," the central bank said.
Measures implemented by Reserve specific liquidity constraints as the
Bank of India (RBI) through the COVID- Fraudsters attempt to get confidential
economies contracted badly with the
19 pandemic since March 2020 have details like user id, login/ transaction
pandemic. The central bank had
contributed significantly in engineering password, OTP (One Time Password)
rushed to frontline to stabilise the sink-
the turnaround of the Indian economy ing economy with various measures as well as debit/ credit card details and
in spite of the pandemic impact, other personal information.
pumping in about ?17.2 lakh crore into
Deputy Governor of the banking regu- The RBI has highlighted some of the
the system, which accounted for 8.7%
lator in the country Michael Debabrata of the GDP, he noted. typical modus operandi being used by
Patra has said. fraudsters like Vishing, Phishing, and
Delivering the 18th C.D. Deshmukh RBI asks people to follow Remote Access.
Memorial Lecture on "RBI's Pandemic "RBI urges the members of public to
Response: Stepping into Oblivion" safe digital banking prac- practice safe digital banking by taking
organised virtually by the Southern tices amid rising cyber all due precautions while carrying out
Regional Centre, Hyderabad, of Coun- any digital (online/ mobile) banking/
cil for Social Development (CSD) on frauds payment transactions. These will help

Friday, he said India was now placed Worried over rising incidence of cyber in preventing financial and/ or other
much better to face the future waves frauds, the Reserve Bank of India (RBI) loss to them," the notice said.

Govt asks Banks to lend only on negotiable warehouse receipts

The government may have backtracked on agricultural laws but it has begun taking small steps for formalisation of
the sector. It has nudged banks to finance warehouses only against negotiable warehouse receipts (NWRs) and elec-
tronic-NWRs, a move aimed at getting more warehouses in the ambit of formal finance.
"At present only 10% of the warehouses in the country are registered because banks are continuing to extend pledge
finance against local warehouses receipts or storage receipts," a government official aware of the deliberations said
on condition of anonymity. That is why it has been suggested to banks that they finance only against eNWRs, the
official said. "This will encourage more warehouses to seek WDRA (Warehouse Development Regulatory Authority)
registration and help in rapid development of the warehousing ecosystem."

BANKING FINANCE | FEBRUARY | 2022 | 11