Lok Sabha Question No. 3554 (UNSTARRED), answered on 2019-07-15
Subject: Credit Card Frauds
Ministry: FINANCE
Asked by: Rahul Ramesh Shewale, Sangeeta Kumari Singh Deo, Bhartruhari Mahtab

3554.

## LOK SABHA UNSTARRED QUESTION NO-3554

## GOVERNMENT  OF INDIA MINISTRY  OF FINANCE

ANSWERED  ON-15.07.2019

## CREDIT CARD  FRAUDS

SHRI RAHUL  RAMESH  SHEWALE SHRI BHARTRUHARI MAHTAB SHRIMATI  SANGEETA  KUMARI  SINGH DEO

Will  the Minister  of FINANCE  be pleased to state:

- (a) whether  the credit  card fraud  cases have increased  manifold  in the country  during  each of the last three  years  and the current  year;
- (c) whether  the Reserve  Bank  of India has directed  all banks  to add security  features  such as electronic  chip and secret PIN to the credit  cards keeping  in view  the rise in credit  card fraud cases, if so, the details  thereof;
- (b) if so, the details  thereof  and the reasons therefor  along  with  the bank  employees  found involved  in such cases, and the action taken against  them  so far,  bank-wise;
- (d) whether  the cases of non-compliance  of such directions  by  banks  have come to the notice of the Government  during  the said period;  and

## ANSWER

- (e)  if  so,  the  details   thereof   and  the  action taken/being   taken   by   the  Government/RBI against  such banks,  bank-wise?

## THE MINISTER  OF STATE  IN THE  MINISTRY  OF FINANCE (SHRI  ANURAG  SINGH  THAKUR )

| Financial year   | Number of cases   |
|------------------|-------------------|
| 2016-17          | 614               |
| 2017-18          | 1,020             |
| 2018-19          | 639               |

(a) and (b) Details  of ATM/credit  card fraud involving  an amount  of Rs. 1 lakh  and above, that   occurred   during   the  last  three   financial   years,   as  reported   by   Scheduled   Commercial Banks (SCBs) to the Reserve  Bank of India (RBI), as per inputs  received  from RBI, are as under:

Further,  as per inputs  received  from  Public  Sector  Banks  (PSBs), no staff involvement  has been found in credit  card frauds.

RBI  has  issued  comprehensive   instructions   in  respect  of  security   and  risk   mitigation measures  related  to electronic/digital transactions,  including, inter-alia , the following:

(c)  to  (e)  RBI  has  apprised   that   banks   were   advised   to  convert   all   existing   magnetic strip cards  issued  by   them   to  EMV  chip  and  PIN  cards  before  31.12.2018.   RBI  has  further apprised   that   as  per  latest   data  available   from   major card  issuers,   it  is  observed   that   98.64 percent  credit  cards issued by  PSBs and private  sector banks  are compliant  with  the EMV chip and PIN requirement.

- (1) Steps for securing  card transactions  include  online  alerts  for all transactions,  cards for international usage  to  be  EMV  chip  and  PIN  enabled,   certification  of  merchant terminals,  and conversion  of all existing  magnetic  strip  cards to EMV chip and PIN cards.
- (3) Steps  for  securing   ATM   transactions   include   requirement of  PIN  entry   for  all transactions,  and enabling  of all  ATMs  for processing  of EMV chip  and PIN cards.
- (2) Steps for securing Internet banking/electronic payments include capping the value/mode  of transactions/beneficiaries, and daily  limit  and issue of alert  on addition of beneficiaries.
- (4) Steps for securing  Prepaid  Payment  Instruments  (PPIs) include  informing  customers if  the  same login  is provided  for PPI and other  services offered by  the PPI issuers, restrictions   on  multiple   invalid   attempts   to  login   to  PPI  and  time-out   features, authentication of every  successive payment  transaction  in wallet  by  explicit  customer consent,  requirement  of additional  factor  of authentication for debit  cards, provision of  customer-induced   options   for  capping   the  number   and  value   of  transactions, provision  of suitable  cooling  period  for funds transfer  on opening  of PPI, and issue of alerts  for PPI transactions.
- (5) RBI has also issued  instructions   limiting   the  liability of  customers   on  unauthorised electronic  banking  transactions.

RBI has informed  that   upon   receipt of  any   input   regarding   credit   card  fraud,   the  same  is forwarded  to the respective  Senior  Supervisory Manager  of RBI for the banks  concerned,  for verifying  the allegations  and taking  necessary  action.  However,  if the cards are issued by  a subsidiary/third-party company,  the same is forwarded  to the department  concerned  in RBI for initiating necessary  action.

*****