Citi reports maximum card frauds in India
Citibank has witnessed maximum 92 frauds of cloning of debit/credit cards or use of fake cards involving over Rs 1.9 crore from 2007-08 to December 2010.Updated: Mar 04, 2011 22:43 IST
Citibank has witnessed maximum 92 frauds of cloning of debit/credit cards or use of fake cards involving over Rs 1.9 crore from 2007-08 to December 2010.
“Largest number of such frauds belong to Citibank from 2007-08 to December 2010...RBI’s committee has suggested a number of steps including replacing the magnetic strip on cards by a chip. All these aspects are being looked into,” finance minister Pranab Mukherjee said in Lok Sabha during the Question Hour.
Compensation to the victims, who lost money in these frauds, is another aspect which is being looked into by the banks.
Besides Citibank, other banks, which reported such frauds are one each by Syndicate Bank, Standard Chartered, Punjab National Bank and Canara Bank in 2010 involving a total amount of less than Rs 23 lakh. Bank of India reported one case of fraud in 2007-08 but the amount involved is huge at over Rs 2.0 crore.
The RBI has issued a master circular on credit card operations of banks recently advising banks to set up internal control systems to combat frauds and take pro-active fraud control and enforcement measures, he said.
The RBI has also advised banks to ensure that credit card operations fulfil KYC requirements, assess credit risk of customers, specify terms and conditions in clear and simple language and ensure prompt dispatch of bills.