Lok Sabha Question No. 2963 (UNSTARRED), answered on 2018-08-03
Subject: Financial Fraud in Electronic Transaction
Ministry: FINANCE
Asked by: CHANDRA PRAKASH JOSHI, JYOTIRADITYA MADHAVRAO SCINDIA, RAMDAS CHANDRABHANJI TADAS, NARANBHAI KACHHADIA

## GOVERNMENT OF INDIA IIIIINISTRY  OF FINANCE DEPARTMENT OF ECONOMIC  AFFAIRS

## LOKSABHA

UNSTARRED QUESTION NO. 2963

TO BE ANSWERED ON O3dAugust 20lUShravana 12, {9O(SAKA)

Financial  Fraud in Electronic  Transaction

2963.  SHRI CHANDRA  PRAKASH  JOSHI: SHRI JYOTIRADITYA  M. SCINDIA: SHRI RAIIIDAS  C. TADAS: SHRI NARANBHA] KAGHHADIYA:

## QUESTION

Will  the Minister  of FINANCE be pleased  to state:

- a) whether  the incidents of the financial frauds have increased  particularly  using mobile  phones, internet banking and digital transactions, if so, the details  thereof;
- b) whether  the regulators  are not taking any concrete steps beyond issuing Pre-forma warning,  if so, the details and the reasons  thereof;
- c) the manner in which Govemment is planning  to tackle this problem;  and
- d) whether a decline in the usage of digital mode of transactions  by the customers have been noticed by the Government  after such breaches  and if so, the details thereof along with its impact  on financial  inclusion  through digitization?

## ANSWER

## MINISTER OF STATE IN MINISTRY  OF FINANCE (SHRI Pon. RADHAKRISHNAN)

- (a): ln spite of considerable growth in numbers of digital  payments  transactions from 22O crore in 201314 to more than 2070.98 crore in 2017-2018,  as per  the information  received from National  Crime Records  Bureau (NCRB), a total of 10, 18 and 26 cases were registered  under DebiU  Credit Card Frauds  during 2014,2015 and 2016 respectively.
- (b) to (c): Reserve Bank of lndia (RBl) has issued various circulars guidelines and advisories related  to security and risk mitigation measures  for securing elec{ronic payment  transactions.  RBI has also set up a Cyber Crisis Management Group  to address any major incidents reported including suggesting ways to respond  and recover to/ from the incidents. ln addition, the Government  has taken  several steps to secure digital payment  system, which inter alia includes issuances of alerts and advisories  by lndian Computer  Emergency  Response Team (CERT-ln),  formulation  of Cyber Crisis Management  Plan for countering cyber-attacks,  eslablishment  of Botnet  Cleaning and Malware  Analysis  Centre to detect and clean infected systems, conduct of Cyber security mock drills,  Cyber security awareness sessions, etc.
- (d): As per  the data submitted  by National  Payments Corporation  of lndia (NPCI), Unmed Payments lnterface  (UPl)  continued to rise exponentially, with 190 million transactions  in April 2018 as compared to 0.3 million in November 2016 and in value terms at { 270 billion in April 2018 as compared to { 0.9 billion in November  2016. Further,  Unstructured  Supplementary  Service  Data(USSD)  transactions,  in volume terms, as reported, were 0.14 million in April 2018 as compared to 0.01 million  in November 2016 wtrereas the conesponding  value was  I 260 million in April 2018 as compared to {7.3 million in November 2016.