E-transfer of funds to become more difficult, more security checks added
By Neelima Shankar
May 17, 2013
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Electronic fund transfer and opening of new current accounts are likely to become more difficult as banks are increasing the security checks.

From the recent frauds in West Bengal, bankers are taking cues to set up a new set of security measures on current account operation. Savings bank accountholders will have to face the heat as banks are planning to introduce few more security checks on the electronic fund transfer or RTGS (real time gross settlement) channel.

In March this year, West Bengal Infrastructure Development Finance Corporation (WBIDFC) and West Bengal State Cooperative Bank were defrauded of Rs 120 crore and Rs 40 crore, respectively, through forgery of term-deposit receipts involving several public and private sector banks.

An informal working group comprising of bankers and Kolkata police has been set up to suggest corrective measures, as said by a senior official of Allahabad Bank.

"Based on our initial observations, we have realised that most of these frauds are being perpetrated using current accounts," the official said.

The working group is preparing a case study on the modus operandi of such frauds. The report is likely to be ready by this June.

Meanwhile, the police have arrested Mr. Indrajit Chatterjee, the alleged mastermind of the Rs 120-crore WBIDFC fraud.

"We plan to approach the Reserve Bank of India with our suggestions to make the process of opening of current accounts more stringent," the official said.

UCO Bank has tightened the norms for fund transfer using RTGS mode.

"Earlier fund transfer could be done by tallying the account and IFSC number. Now we are also asking for the name of beneficiary," a senior official of the bank said.


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