It is clear that the growth of e- -commerce and online shopping is showing no signs of slowing down in India. At the same time new risks associated with taking payments via these new channels has increased. Emphasizing on the loopholes of law in Internet and mobile phones financial transactions Reserve Bank of India, Deputy Governer, HR Khan said is leading to rise in frauds.
Speaking at a seminar on “Trenda in Economics Offences” HR Khan said that the increase of e-commerce and information technology-enabled transactions has led to quite a few cyber crimes. The Information Technology Act of 2000 which governs Internet and mobile phones-based financial transactions. But, there are quite a few loopholes in the law that is a major area of concern.
In addition, Mr Khan expressed concern over the habit of not reporting on discoveries and said RBI has worked out a plan with the Union home ministry that entails having nodal police stations at every district to track fake notes.Even though the IT Act exists, quite a few districts in the state are yet to designate dedicated agencies like the cyber crime investigation cell formed by Maharashtra, he added.
“To encourage people, it has been decided to not file a first information report, which is considered tedious, till a limit of five pieces of fake currency,” Mr Khan said, adding that the nodal body will send the data to the country’s financial intelligence unit.
The deputy governor pointed out to the instances where colour photocopies of a single set of documents were taken out to get multiple mortgage loans. He said the National Housing Bank was in the process of creating a national registry of advances on housing loans to reduce such frauds.