RBI Tightens Reins on Mis-Selling and Digital Fraud in Financial Sector

The Reserve Bank of India plans to implement stringent norms to curb the mis-selling of financial products and address digital frauds. The focus will be on enhancing customer protection, reinforcing cybersecurity, and supporting sustainable development through advanced technologies like AI platforms to detect risky transactions.

The Reserve Bank of India (RBI) is set to issue comprehensive guidelines aimed at preventing the mis-selling of financial products and enhancing consumer protection within the financial sector.

A recent report by the RBI highlights the significant impact mis-selling has on customers and the overall financial landscape. To address digital frauds, the RBI is collaborating with stakeholders to develop robust measures that enhance cybersecurity and customer safety.

Initiatives like MuleHunter.ai and the digital payments intelligence platform are part of the RBI's strategy to detect and prevent fraud. The review of customer liability in unauthorized transactions is also underway, aligning with shifts in digital banking.

(With inputs from agencies.)