The Indian government is set to introduce new provisions aimed at curbing the rising instances of online fraud and enhancing security measures for bank accounts.
As part of the initiative,
stringent rules will be implemented for opening bank accounts and obtaining new SIM cards,
in a bid to counter the fast-growing online fraud across the country.
Addressing the surge in online fraud:
To combat the increasing cases of online fraud, the government intends to introduce a new rule mandating comprehensive information about individuals applying for a mobile SIM or opening a bank account.
This new rule will prevent unauthorized use of someone else’s personal details and ensure accountability.
Necessity of EKYC:
According to media reports, telecom operators and banks may be required to conduct physical verification of customers in the future, making it mandatory for EKYC processes to be complemented by in-person verification.
Currently, individuals applying for a bank account or SIM card undergo verification by submitting their Aadhaar details through online EKYC.
Controlling easy availability of SIM cards:
The ease with which SIM cards are currently available has contributed to the surge in bank fraud cases. Individuals acquire new SIM cards, change their plans, and subsequently deactivate them, resulting in fraudulent activities. As per a Reserve Bank of India (RBI) report, bank fraud cases involve an alarming sum of over Rs 41,000 crore.
Issuance of new rules:
To address these concerns, the government is preparing to revise the process of issuing new SIM cards and opening bank accounts, with a focus on tightening KYC (Know Your Customer) rules.
Sources indicate that telecom operators and banks may soon be directed to implement these new rules.
The Ministry of Home Affairs has conducted a review meeting in collaboration with the Ministry of Finance and Telecom, discussing the roadmap for the forthcoming decision.
