he Reserve Bank of India (RBI) has cautioned banks against increasing instances of fraud in accounts linked to the government’s direct benefit transfer (DBT) and asked them to step up their vigilance and build in more stringent checks. The issue was flagged by the banking regulator in a recent meeting with bankers.
The regulator wants lenders to be more proactive and keep a check on unusual withdrawals or transactions, said a senior executive aware of the development.
Another banker said there have been reports that some beneficiaries under various government schemes take instant loans from local moneylenders and, in turn, hand over their account details, including passbooks and ATM cards, as guarantees.
Source:
Economic Times
