Today is the end of a financial year for Indian Banks. It is time for them to draw their annual reports and submit it to both RBI and its shareholders. One essential information missing from Bank reports it the extent of loss in E Banking frauds.

RSA recently stated that the losses suffered by Indian enterprises in 2011 through Phishing was of the order of Rs 172 crores.

In an RTI based information releassed by RBI by DNA, Mumbai, it was stated that during 2010-11, the losses on E Banking were Rs 467 crores in Citi Bank, Rs 298 crores in SBI, Rs 112 crores in ICICI Bank and Rs 39 crores in HSBC. (See here) According to another rough estimate by Symantec, phishing related losses in India was of the order of Rs 6500 crores.

The undersigned has been fighting for “Safe E Banking” and advocating that Banks which cannot provide safety in Internet Banking should be barred from providing Internet Banking service. In this connection demand has been already made on RBI to cancel the licenses of one branch each of ICICI Bank and Punjab National Bank. However RBI has maintained a royal silence.

Naavi has also brought to public attention the continued vulnerabilities in E Banking as demonstrated by Mr K S Yash, a security consultant in Bangalore. The videos of a live demonstration before a group of experts have also been submitted to CERT IN and informed to RBI. Invitations have been sent to both RBI and CERT IN to take the demonstration directly and initiate action to restore the confidence of the public in E Banking. … We are awaiting a positive response from both of them.

Under this background, one must question the wisdom of Banks and RBI in hiding the real information of

-How much money is being lost by Indian Banks through Phishing and any form of E Banking frauds?

-Whether they are being reported to RBI as per the RBI’s Fraud reporting guidelines?,

-Whether the losses are recovered out of insurance as per the RBI’s Internet Bankign guidelines of June 14, 2001?

-If not, why RBI is silent on the Bank’s recovering the money from the hapless customers?,

-Why DIT is barring legal remedies in such cases by not appointing a chair person for Cyber Appellate Tribunal since last June?,

- Why DIT and the Government of Karnataka has not been able to address the anomalous situation created by the IT Secretary of Karnataka deciding that no cases can be brought before him against any Banks?,

-Why RBI is tolerating the rogue behaviour of Banks in ignoring its guidelines both of June 14 2001 and the more recent Gopala Krishna Committee report?

-Why RBI is unable to notify the recommendations of the Damodaran Committee report?,

-Why RBI is silent on our request to apply KYC failure fines to create an E Banking insurance Fund?,

-Why our Ministers Kapil Sibal, Mr Sachin Pilot as well as the PM are unable to respond to our complaints? etc. vows to start a fresh campaign on “Protecting E Banking Customers” and invites Consumer activists all over India to join in this campaign.

I invite support and comments at


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