Cyber fraud rising, tech alone not enough to protect customers, says RBI Deputy Governor Swaminathan J

Reserve Bank of India

Reserve Bank of India’s (RBI) deputy Governor Swaminathan J said cyber fraud and digital scams have increased, and they can cause real hardship to ordinary customers. Banks have invested in systems to detect suspicious transactions, to send alerts and to strengthen authentication.

“But technology alone is not enough. Sharing of fraud typologies, coordinated efforts to take down mule accounts, and working with law enforcement agencies are all important,” Swaminathan said while addressing at an annual banking event organised by Standard Chartered Bank on November 28, 2025.

He added that customer trust is shaped most during moments of crisis and not through advertising or legal fine print. The coordinated action across banks, fintechs and law enforcement agencies is critical to tackling digital frauds.

Swaminathan said the banking risk landscape has become more complex with the emergence of cyber, climate and reputational risks alongside traditional credit and market risks. He stressed that risk management and governance must now be central to strategy and board oversight.

On customer service, he said technology has improved access and convenience but customers continue to value fairness, transparency and quick grievance redress. He also underlined the need for digital inclusion so that less tech-savvy users are not excluded.

Further, he said that banks and fintechs must combine their respective strengths in trust, innovation and risk management through sustainable collaboration. He also cautioned banks on the responsible use of data and rising dependence on third-party IT service providers, stressing that operational resilience would be key to maintaining system-wide stability.