Lok Sabha Question No. 1409 (UNSTARRED), answered on 2019-07-01
Subject: ATM Fraud Cases
Ministry: FINANCE
Asked by: Kanakmal Katara

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 1409

TO BE ANSWERED ON 01.07.2019(MONDAY)/ ASHADHA 10, 1941 (SAKA)

## ATM Fraud Cases

## 1409:  SHRI KANAKMAL KATARA :

Will the Minister of FINANCE  be pleased to state :

- (a)  the  bank-wise details of the ATM/Debit Card fraud cases during the last three years in both public and private sector banks along with the action taken thereon; and
- (b) the types of the remedial actions suggested to the Government by the Reserve Bank of India to be taken in the said cases?

## Answer THE FINANCE MINISTER (SMT.  NIRMALA SITHARAMAN)

- (a)  to  (b)  As  apprised  by  Reserve  Bank  of  India  (RBI),   bank-wise  data  on  frauds  reported  under 'ATM/Debit Card  by public and private sector banks (during the last three years ) is Annexed. In this regard, RBI has issued circulars/guidelines from time to time, for preventing bank frauds and suitably protecting the interest of the customers which inter-alia includes:
1. Banks have been directed to examine the fraud cases and report them to law enforcement agencies, examine staff accountability, complete proceedings against the erring staff expeditiously, take steps to recover  the  amount  involved  in  the  fraud,  claim  insurance  wherever  applicable  and  streamline  the system as also the procedures so that frauds do not recur.
2.  The  customers  will  have  zero  liability  in  case  of  unauthorised  transactions  occurring  due  to contributory  fraud  /  negligence  /  deficiency  on  the  part  of  the  bank  and  due  to  third  party  breach, provided, they notify the bank regarding the unauthorised transactions within three working days of receiving the communication from the bank regarding this transaction.
3.   Banks  to  provide  customers  with  24x7  access  through   multiple  channels  (at  a  minimum  via website, phone banking, SMS, e-mail, IVR, a dedicated toll-free helpline, reporting to home branch, etc.)  for  reporting  unauthorised  transactions  that  have  taken  place  and/  or  loss  or  theft  of  payment instrument, such as, card, etc.
4.  RBI  is  running  the  awareness  campaign  under  the  banner  of  'RBI  Kehta  Hai'  on  safe  digital banking which inter-alia include:
-  Not to share password /pin/OTP received through SMS.
-  Act  swiftly  on  alerts  received  on  transactions,  which  customer  have  not  initiated  or  not authorized.
-  Practicing safe mobile banking, such as awareness on benefits of registering mobile number with bank for instant alerts.
-  Not storing important banking data in mobile.
-  Use only verified, secure and trusted website.
-  Avoid banking transactions on free networks,
-  Change PIN regularly.
-  Blocking ATM card, Credit Card and prepaid card immediately if it is lost or stolen.

*****

## Annexure as referred in the part (a) to the Lok Sabha Unstarred Question No 1409 for answer on 01.07.2019 regarding 'ATM Fraud Cases'

| Bank Name                          | 2016-17              | 2016-17                        | 2017-18              | 2017-18                        | 2018-19              | 2018-19                        |
|------------------------------------|----------------------|--------------------------------|----------------------|--------------------------------|----------------------|--------------------------------|
| Bank Name                          | No.of Frauds         | Amount involved (Rs. In crore) | No.of Frauds         | Amount involved (Rs. In crore) | No.of Frauds         | Amount involved (Rs. In crore) |
| PUBLIC SECTOR BANKS ALLAHABAD BANK | 0                    | 0                              | 0                    | 0                              | 1                    | 0.01                           |
| ANDHRA BANK                        | 1                    | 0.05                           | 0                    | 0                              | 0                    | 0                              |
| BANK OF BARODA                     | 3                    | 0.95                           | 3                    | 0.17                           | 2                    | 0.1                            |
| BANK OF INDIA                      | 0                    | 0                              | 2                    | 0.09                           | 3                    | 0.48                           |
| BANK OF MAHARASHTRA                | 1                    | 0.02                           | 0                    | 0                              | 0                    | 0                              |
| BHARATIYA MAHILA BANK LTD.         | 1                    | 0.01                           | 0                    | 0                              | 0                    | 0                              |
| CANARA BANK                        | 1                    | 4.54                           | 3                    | 0.32                           | 8                    | 0.83                           |
| CENTRAL BANK OF INDIA              | 1                    | 0.01                           | 4                    | 0.05                           | 29                   | 0.41                           |
| CORPORATION BANK                   | 18                   | 0.26                           | 1                    | 0.01                           | 8                    | 0.16                           |
| DENA BANK                          | 1                    | 0.01                           | 2                    | 0.05                           | 0                    | 0                              |
| IDBI BANK LIMITED                  | 30                   | 0.56                           | 23                   | 0.46                           | 49                   | 0.85                           |
| INDIAN BANK                        | 24                   | 0.81                           | 4                    | 0.07                           | 11                   | 0.14                           |
| INDIAN OVERSEAS BANK               | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| ORIENTAL BANK OF COMMERCE          | 0                    | 0                              | 0                    | 0                              | 2                    | 0.04                           |
| PUNJAB NATIONAL BANK               | 1                    | 0.06                           | 2                    | 0.03                           | 2                    | 0.11                           |
| STATE BANK OF BIKANER AND JAIPUR   | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| STATE BANK OF HYDERABAD            | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| STATE BANK OF INDIA                | 4                    | 0.11                           | 144                  | 10.22                          | 206                  | 4.85                           |
| STATE BANK OF MYSORE               | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| STATE BANK OF PATIALA              | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| STATE BANK OF TRAVANCORE           | 2                    | 0.09                           | 0                    | 0                              | 0                    | 0                              |
| SYNDICATE BANK                     | 0                    | 0                              | 0                    | 0                              | 3                    | 0.06                           |
| UCO BANK                           | 2                    | 0.05                           | 0                    | 0                              | 4                    | 0.09                           |
| UNION BANK OF INDIA                | 3                    | 0.26                           | 3                    | 0.12                           | 7                    | 0.13                           |
| UNITED BANK OF INDIA               | 0                    | 0                              | 3                    | 0.1                            | 1                    | 0.02                           |
| VIJAYA BANK                        | 0                    | 0                              | 1                    | 0.05                           | 1                    | 0.18                           |
| PRIVATE SECTOR BANKS               | PRIVATE SECTOR BANKS | PRIVATE SECTOR BANKS           | PRIVATE SECTOR BANKS | PRIVATE SECTOR BANKS           | PRIVATE SECTOR BANKS | PRIVATE SECTOR BANKS           |
| AXIS BANK LIMITED                  | 31                   | 2.5                            | 53                   | 1.72                           | 63                   | 1.49                           |
| BANDHAN BANK LIMITED               | 0                    | 0                              | 0                    | 0                              | 2                    | 0.02                           |
| CITY UNION BANK LIMITED            | 0                    | 0                              | 1                    | 31.56                          | 0                    | 0                              |
| DCB BANK LIMITED                   | 0                    | 0                              | 1                    | 0.03                           | 4                    | 0.04                           |
| FEDERAL BANK LTD                   | 2                    | 0.27                           | 9                    | 1.56                           | 4                    | 0.17                           |
| HDFC BANK LTD.                     | 52                   | 0.75                           | 94                   | 1.23                           | 116                  | 1.65                           |
| ICICI BANK LIMITED                 | 215                  | 6.77                           | 348                  | 6.65                           | 107                  | 3.18                           |
| IDFC BANK LIMITED                  | 0                    | 0                              | 1                    | 0.02                           | 2                    | 0.02                           |
| INDUSIND BANK LTD                  | 0                    | 0                              | 11                   | 0.19                           | 34                   | 1.08                           |
| ING VYSYA BANK LTD                 | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| JAMMU &KASHMIR BANK LTD            | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| KARNATAKA BANK LTD                 | 0                    | 0                              | 2                    | 0.24                           | 2                    | 0.03                           |
| KARUR VYSYA BANK LTD               | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| KOTAK MAHINDRA BANK LTD.           | 44                   | 0.88                           | 71                   | 1.35                           | 133                  | 2.09                           |
| LAKSHMI VILAS BANK LTD             | 1                    | 0.01                           | 2                    | 3.55                           | 1                    | 0.04                           |
| RBL BANK LIMITED                   | 1                    | 0.08                           | 6                    | 0.08                           | 5                    | 0.06                           |
| SOUTH INDIAN BANK LTD              | 1                    | 0.04                           | 1                    | 0.02                           | 7                    | 0.17                           |
| TAMILNAD MERCANTILE BANK LTD       | 0                    | 0                              | 1                    | 0.03                           | 2                    | 0.02                           |
| THE DHANALAKSHMI BANK LTD          | 0                    | 0                              | 0                    | 0                              | 0                    | 0                              |
| YES BANK LTD.                      | 0                    | 0                              | 1                    | 0.01                           | 5                    | 0.13                           |

Source: RBI