Core Insights - The incidence of digital frauds has shown a cyclical pattern, decreasing until July and then rising again, with the Reserve Bank of India (RBI) analyzing the reasons behind this trend [1][6] - In FY25, banks reported 13,516 cases of card and internet frauds totaling Rs 520 crore, primarily through digital channels, with private sector banks being the main contributors to digital frauds [1][6] - The banking system faces existential risks from digital currencies, which are not well understood or debated globally, and banks need to prepare for significant changes in their business models due to Central Bank Digital Currencies (CBDCs) [2][4] - Incremental digitization is deemed insufficient for banks to remain competitive, as they are structurally vulnerable due to monolithic IT systems and high fixed costs [5][6] - Modernizing core infrastructure is essential for banks to compete effectively with the fintech ecosystem [6]
Digital frauds spike since July; RBI probing causes, warns of risks from digital currencies
The Economic Times·2025-11-07 10:58