Delhi HC directs IBA to ensure compliance with SOP for fraudulent transactions
The Delhi High Court has directed the Indian Banks Association (IBA) to convene a meeting aimed at ensuring that all banks adhere to the Standard Operating Procedure (SOP) concerning the disclosure of information on fraudulent transactions to law enforcement agencies.
IANS
Feb 7, 2024 10:56
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New Delhi, Feb 7 (IANS) The Delhi High Court has directed the Indian Banks Association (IBA) to convene a meeting aimed at ensuring that all banks adhere to the Standard Operating Procedure (SOP) concerning the disclosure of information on fraudulent transactions to law enforcement agencies.
Justice Prathiba M. Singh's directive came in response to a batch of petitions concerning the proliferation of fraudulent domain names, filed by trademark and brand owners seeking relief against the misuse of their marks and names by unauthorised persons.
Justice Singh said that while the SOP exists, its implementation across banks remains a work in progress.
During proceedings, the court was informed that despite a meeting called by the Reserve Bank of India (RBI) in response to the court's earlier directive, there was a need for expedited information sharing on fraudulent transactions.
Both the IBA and the RBI were said to have taken cognisance of the issue at hand.
The court then issued a notice to the IBA's Senior Advisor, summoning him to present the stance of all banks before the court.
The matter is scheduled for further hearing on April 6.
Previously, the court had directed the Joint Secretary concerned of the Ministry of Home Affairs to convene a meeting of Cyber Crime Cells in various states to enhance coordination in dealing with cases involving fraudulent transactions. It also urged the RBI to take measures to curb malpractices where funds are accepted by banks in the names of reputable companies, but the accounts are held by third parties.
Additionally, the court sought clarification from RBI's counsel regarding the possibility of issuing guidelines mandating banks to verify the beneficiary's name or billing details against the account holder's name, not just the account number, for both online and offline payments.
--IANS
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