Lok Sabha Question No. 162 (UNSTARRED), answered on 2020-02-03
Subject: Debit/Credit Card Frauds
Ministry: FINANCE
Asked by: Manoj Kishorbhai Kotak

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

## LOK SABHA UNSTARRED QUESTION No. 162

ANSWERED ON MONDAY, FEBRUARY 03, 2020/ MAGHA 14, 1941 (SAKA)

## Debit/Credit Card Frauds

## 162. SHRI MANOJ KOTAK:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  debit  and  credit  card  frauds  have  increased  in  India  in  international  and  online purchasing;
- (b) if so, the details thereof and the action taken by the Government to control such frauds;
- (c) whether any action has been taken by the Government to secure the debit and credit card uses; and
- (d) if so, the details thereof along with the other steps taken by the Government to protect the right of the credit and debit card users?

## Answer

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

(a) to (d) As apprised by Reserve Bank of India (RBI), the details of all types of frauds reported in the  category  'Card/Internet-ATM  &  Debit  cards/Credit  cards/Internet  banking'  reported  since 2017-18 are as below:

| Year                  |   Number of Frauds |   Amount of Frauds (in Rs. crore) |
|-----------------------|--------------------|-----------------------------------|
| 2017-18               |              34791 |                            168.99 |
| 2018-19               |              52304 |                            149.42 |
| 2019-20 (till Sep'19) |              30965 |                            100.64 |

RBI  has  issued  circulars/guidelines  from  time  to  time  regarding  measures  to  minimise  cyber threats related to online transactions and digital payments which, inter-alia, include:

- i. To ensure all active cards by them are EMV Chip and Pin-based.
- ii. RBI's  circular  on  'Control  measures  for  ATMs  -  Timelines  for  compliance'  dated 21.6.2018  advises  banks  to  implement  various  control  measures  within  a  time  bound manner, including implementation of anti skimming, white listing solution, up-gradation of software and to closely monitor the compliance.
- iii. RBI's Master Circular on 'Frauds-Classification  and  Reporting',  dated  1.7.2015,  advises concerned banks 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.
- iv. As  per  RBI's  circular  on  'Customer  Protection  -  Limiting  Liability  of  Customers  in Unauthorised  Electronic  Banking  Transactions'  dated  6.7.2017,  in  case  of  unauthorised transactions  occurring  due  to  contributory  fraud/negligence/deficiency  on  the  part  of  the bank and due to third party breach with customer notifying such unauthorized transaction to the bank within three working days of receiving communication from the bank, he/she is entitled to zero liability.  Further, on being notified by the customer, the bank has to credit (shadow  reversal)  the  amount  involved  in  the  unauthorised  electronic  transaction  to  the customer's  account  within  10  working  days  from  the  date  of  such  notification  by  the customer (without waiting for settlement of insurance claim, if any).
- v. 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.

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