Photographs: Reuters
"Largest number of such frauds belong to Citibank from 2007-08 to December 2010...RBI's committee has suggested a number of steps including replacing the magnetic strip on cards by a chip. All these aspects are being looked into," Finance Minister Pranab Mukherjee said in Lok Sabha during Question Hour.
Compensation to the victims, who lost money in these frauds, is another aspect which is being looked into by the banks.
Citibank sees maximum number of card fraud
Image: Standard Chartered has also been hit by fraudPhotographs: Reuters
Bank of India reported one case of fraud in 2007-08, but the amount involved was huge at over Rs. 1.92 crore (Rs. 19.2 million).
Mukherjee said the Committee, headed by Executive Director, RBI has given various suggestions and a decision would be taken soon in this regard.
Besdies, the RBI has also issued a series of instructions relating to Know Your Customer (KYC) to the banks so that identification could be authenticated before issuing a debit or credit card, he said.
Citibank sees maximum number of card fraud
Image: RBI has asked banks to take pro-active stepsPhotographs: Reuters
The RBI has issued a Master Circular on "Credit Card Operations of banks" recently advising banks to set up internal control systems to combat frauds and to take pro-active fraud control and enforcement measures, Mukherjee said in his reply.
The Central bank has also advised banks to ensure that credit card operations were run on "sound, prudent and profitable" lines and fulfil "Know Your Customer" requirements, assess credit risk of customers, specify terms and conditions in clear and simple language and ensure prompt dispatch of bills.
article