Topics Covered: Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential.
RBI to set up Wing for banking fraud oversight
What to study?
For Prelims: RBI’s power to set up such wings.
For Mains: Need for this wing, challenges and concerns and ways to address them.
Context: Reserve Bank of India is planning to set up exclusive wing for banking fraud oversight. Nothing official has been revealed in this regard.
What may be the composition of this wing?
It may have teams for meta-data processing and analysis, artificial intelligence analysis units, as well as pro-active risk assessment cell. Experts from the private sector working in all these domains will be roped in to train the new members in the fraud oversight wing.
Why there is a need for separate wing for fraud oversight?
After the loan fiasco at Punjab National Bank, the RBI had been mulling ways to pro-actively detect such frauds. As part of that plan, the banking regulator had late last year moved to create a separate cadre of its own employees who would work in regulation and oversight sections. With the latest Yes Bank crisis, it has been felt even more necessary to have such a wing at the earliest to protect the consumer interests.
Powers of RBI wrt regulation of banking sector in the country.
Discuss the need for having a separate wing to oversee banking fraud in India.
Sources: Indian Express.