Lok Sabha Question No. 2082 (UNSTARRED), answered on 2024-08-05
Subject: Financial Loss due to Cyber Crimes
Ministry: FINANCE
Asked by: Shri Rajesh Verma

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

## UNSTARRED QUESTION NO: 2082

ANSWERED ON THE MONDAY, AUGUST 5, 2024/14 SHRAVANA, 1946 (SAKA)

## 2082. SHRI RAJESH VERMA:

Will the Minister of FINANCE be pleased to state:

- (a) the total amount of financial loss caused due to cyber crimes to individuals having accounts in nationalized banks, mainly SBI and private banks during the last five years, yearwise;
- (b) the details of the policy of Government to reimburse the financial loss suffered by an individual due to cyber crimes; and
- (c) the details of the initiatives taken by Government to create awareness against cyber crimes and to recover the proceeds of money lost due to such crimes?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

- (a): As informed by Reserve Bank of India (RBI), the extent of loss due to frauds (₹1 lakh and above), reported by banks under the category - Credit Cards, ATM / Debit Cards and Internet Banking, during the last five financial years (FY 2019-20 to FY 2023-24) is as under:
- (b):  To  help  customers  recover  loss  on  account  of  fraudulent  transactions,  RBI  has  issued instructions  to  banks  on  limiting  the  liability  of  customers  in  cases  of  unauthorised  electronic banking transactions. The salient features are as under:
- (i) Zero Liability: A customer need not bear any loss if the deficiency is on the part of the bank and in cases where the fault lies neither with the bank nor with the customer but lies elsewhere in the  system  and  the  customer  notifies  the  bank  within  three  working  days  of  receiving  the communication about the unauthorized transaction.
- (ii) Limited Liability:
- Where the loss is due to the customer's negligence, the customer has to bear the entire loss until the customer reports the unauthorized transaction to the bank; and
- Where the fault lies neither with the customer nor with the bank and lies elsewhere in the system and the customer reports between four to seven working days of the unauthorized transaction,  the  maximum  liability  of  the  customer  ranges  from  ₹5,000  to  ₹25,000, depending on the type of account/ instrument.

| FY         |   Extent of Loss (₹ in crores) |
|------------|--------------------------------|
| FY 2019-20 |                          44.22 |
| FY 2020-21 |                          50.1  |
| FY 2021-22 |                          80.33 |
| FY 2022-23 |                          69.68 |
| FY 2023-24 |                         177.05 |

(iii)  Liability as per Board approved policy: If the unauthorized transaction is reported beyond seven working days, the customer liability shall be determined as per the bank's Board approved policy.

The burden of proving customer liability in case of unauthorized electronic banking transactions shall lie on the bank.

(c):  To spread awareness against cyber-crimes, the Government has been taking various initiatives from time to time. These, inter alia, includes cyber safety tips through social media, publishing of information security best practices, organizing cyber safety and security awareness programmes, etc.

RBI and banks have also been organising awareness campaigns through dissemination of short SMS,  radio  campaign,  publicity  on  prevention  of  cyber-crime  etc.  Further,  RBI  has  been conducting electronic-banking awareness and training (e-BAAT) programmes about frauds and risk mitigation.

Indian Computer Emergency Response Team (CERT-In) has been taking various measures to prevent cyber frauds. These include issuance of alerts/ advisories and conducting cyber security mock drills to assess the cyber security posture and preparedness of organisations.

In  order  to  facilitate  the  citizens  to  report  any  cyber  incidents  including  financial  frauds,  the Ministry  of  Home  Affairs  (MHA)  has  launched  a  National  Cybercrime  Reporting  Portal (www.cybercrime.gov.in) as well as a National Cybercrime Helpline Number '1930'. Further, customers can also report financial frauds on the official customer care website or branches of the banks.

******