Bank of Baroda World App has been banned by RBI

Current Context: In October 2023, the Reserve Bank of India (RBI) stopped Bank of Baroda from onboarding new customers on its mobile app 'BoB World’. This action was taken due to certain material supervisory concerns.

• In response to the RBI’s directions, Bank of Baroda stated that it had already carried out corrective measures to address the concerns of the central bank, and initiated further steps to plug any remaining gaps.
• The Finance Ministry is reportedly proposing stricter measures to protect citizens from cyber fraud, particularly after the Bank of Baroda World app scam.
• These measures include stricter Know Your Customer (KYC) procedures and improved data security practices.
• The urgency for these actions is underscored by the fact that in 2023 alone, India’s National Crime Records Bureau reported over 1.1 million cyber fraud cases amounting to a staggering Rs 7,488.63 crore ($8.9 billion).
• To address this growing threat, the Ministry of Home Affairs established the Indian Cyber Crime Coordination Centre (I4C).
• The RBI may also advise banks to review the concentration of Business Correspondents (BCs) in areas with a high incidence of cyber fraud.
• Additionally, the RBI may recommend stricter onboarding procedures for BCs and even block micro ATMs involved in fraudulent activity.

Question:

Q.1 What was the total amount involved in the cyber fraud cases reported by India’s National Crime Records Bureau in 2023?
a. Rs 7,488.63 crore ($8.9 billion)
b. Rs 5,000 crore ($6.7 billion)
c. Rs 1,000 crore ($1.2 billion)
d. Rs 10,000 crore ($13.4 billion)