New Delhi: Even as the government is vigorously pushing for digitisation of payment in the banking, financial services and insurance (BFSI) sector, many growing challenges on safety and security of common customers of banks need to be met. Several financial regulators, including Reserve Bank of India (RBI), should be ahead of the curve in order to ensure the safety and security of transactions, according to Barendra Kumar Bhoi, former head of the RBI’s Monetary Policy Department.
Stressing the need for urgent regulatory attention, Bhoi said that risks are hidden in a highly digitalised world. "There is proliferation of information and communication technology, while self-regulatory organisations (SROs), ombudsman, sandbox are not enough to meet the customers' needs. With the sea changes taking place in payment and settlement systems on digital, mobile banking and financial services, financial regulators need to strengthen the digital ecosystem so as to ensure the common man's safety, security and orderly developments amidst the emerging risks," Dr Bhoi said at a virtual event.
Though the digital divide in India is intense, he said, the digital ecosystem in India is still weak, especially in the rural areas. "Frauds and cyber-related crimes are growing high, whereas risk management on digital transformation of the BFSI segment is reported to be inadequate. As a result, customer satisfaction is inadequate due to increasing cases of mis-selling, failure of transaction and poor dispute resolution framework.”