Reserve Bank of India
09:15
Showing posts with label Money. Show all posts
Showing posts with label Money. Show all posts
Monday, 23 October 2017
Wednesday, 27 September 2017
SBI
08:21
Mallya diverted most of Rs.6k crores loan to shell cos (September 25, 2017)
Mallya diverted most of Rs.6k crores loan to shell cos (September 25, 2017)
In another potential setback for Vijay Mallya, the CBI and Enforcement Directorate are preparing to charge sheet the controversial tycoon for allegedly diverting a large chunk of funds from the Rs.6,027-crore loan he took for his now-defunct Kingfisher Airlines from a consortium of banks led by State Bank of India. The money was allegedly diverted to shell companies in seven countries, including the US, UK, France and Ireland, official sources said. CBI and ED sources claimed the evidence would strengthen their case for Mallya's extradition from the UK.
An official refused to divulge the exact amount laundered by Mallya from the Rs.6,027 crore loan money but said “it’s huge”. Mallya, who could not be contacted for his response, has previously denied charges of wrongdoing. “We received information that Mallya, using his company and associates, laundered a major chunk of this Rs.6,027 crore loan to several countries. Now, we have established links with shell companies and bank accounts in at least seven countries. Letters rogatory have already been sent to the US, the UK, France and Ireland and we will get complete details soon,” the official said.
Sources in the CBI and ED, however, maintain that Mallya went about the fraud in a “systematic” way. “Vijay Mallya would repay some part of the loan, which allowed him to gain confidence of the banks, which gave him further loans. In all, he took Rs 6,027 crore in loans from a consortium of 17 banks," said the official. SBI had the maximum exposure of Rs.1,600 crore.
Officials said the fresh charge sheets having details of ‘systematic money laundering’ through shell companies in various countries should beef up the case against Mallya. A plea for Mallya’s extradition from the UK, where he fled on March 2 last year, is being heard on the basis of a Rs.900 crore IDBI Bank loan fraud/money laundering case in the court of senior district judge (chief magistrate) Emma Arbuthnot at 81, Marylebone Road, London.
The CBI and ED plan to share the fresh charge sheets with the UK prosecutors before December, when the final extradition hearing will begin, said sources Other banks which gave loans to Kingfisher along with SBI include Punjab National Bank with an exposure of Rs.800 crore, Bank of India (Rs.650 crore), Bank of Baroda (Rs.550 crore), Central Bank of India (Rs 410 crore), UCO Bank (Rs.320 crore), Corporation Bank (Rs.310 crore), State Bank of Mysore (Rs.150 crore), Indian Overseas Bank (Rs.140 crore). Till now, Mallya was charged only in the Rs.900 crore IDBI loan case.
It was established in the IDBI case that Mallya laundered around Rs.417 crore out of Rs.900 crore loan by forming a complex web of companies and nominating directors in those companies who were either his personal staff, retired company official or third persons. A portion of the IDBI loan was reportedly laundered by Mallya to Cayman Islands, Mauritius, the UK and Switzerland, said sources. As first reported by TOI, Britain’s Serious Fraud Office (SFO) has launched a “money laundering” investigation against Mallya. The ED has identified property worth over Rs.11,000 crore belonging to Mallya and property Rs.9,000 crore has already been attached under the Prevention of Money Laundering Act.
Source:SBI
Saturday, 8 April 2017
volume of transactions
19:20
NEFT transfers to be faster as RBI cuts clearance time
NEFT transfers to be faster as RBI cuts clearance time
The RBI cuts clearance time for NEFT in an attempt to enhance efficiency of the electronic payment system and add to customer convenience
Mumbai: The Reserve Bank of India (RBI) has decided to slash clearance time for National Electronic Funds Transfer (NEFT) in an attempt to enhance efficiency of the electronic payment system and add to customer convenience.
In line with the document on Vision-2018 for Payment and Settlement Systems, the NEFT settlement cycle will be reduced from hourly batches to half hourly batches, the RBI said in the first bi-monthly monetary policy for 2017-18.
“Consequently, 11 additional settlement batches will be introduced at 8.30am onwards, taking the total number of half hourly settlement batches during the day to 23,” the newly appointed deputy governor B.P. Kanungo said. This will enhance the efficiency of the NEFT system and add to customer convenience, he said.
The starting batch at 8am and closing batch at 7pm shall remain the same and the return discipline will also remain the same, that is B+2 hours (settlement batch time plus two hours) as per the existing practice, it said.
On promoting financial inclusion and literacy, it said the RBI is initiating a pilot project on financial literacy at the block level to explore innovative and participatory approaches to financial literacy.
The pilot project will be commissioned in nine states across 80 blocks by non-government organisations (NGOs) in collaboration with sponsor banks, it said.
Six NGOs registered with the Depositor Education and Awareness Fund, viz. CRISIL Foundation, Mumbai; Dhan Foundation; Swadhaar Fin Access, Mumbai; Indian School of Micro Finance for Women (ISMW); Samarpit, Chhattisgarh and the PACE Foundation have been selected to execute the pilot project in collaboration with banks, it said.
The pilot project will be executed with the following broad objectives — active saving and good borrowing; financial planning and goal setting and going digital and consumer protection.
The Centres for Financial Literacy (CFL) will be set up under a common name and logo, Money-wise Centre for Financial Literacy.
“The sponsor banks will enter into contracts with the identified NGOs within three months, that is, by June 30, 2017. Thereafter, the NGOs will start operating the CFLs within three months of entering into contracts with banks,” it said.
Source:Livemint
Tuesday, 4 April 2017
Reserve Bank of India
05:51
Note ban: In rude shock for many NRIs, resident Indians, new window shut
Note ban: In rude shock for many NRIs, resident Indians, new window shut
Several Indian residents who flew out of the country on November 10, just after the note ban announcement in the evening of November 8, are in for a rude shock as they are being turned away by the Reserve Bank of India. The reason is that they were in the country for a day after demonetisation, which came into effect after midnight, November 8-9. Although banks and ATMs were shut on November 9, the central bank has rejected that as a valid argument.
With the March 31 deadline to exchange old notes for Indians who were abroad during the note ban period approaching, the RBI offices are teeming with people, with many queueing up from as early as 4 am in the morning. The entry is allowed at 10 am and the gates close by 3 pm, with more than 500 people failing to gain access daily.
“We cannot change rules even by a millimetre,” said an RBI official, when apprised of the challenges. However, the RBI did not respond to a query sent by Business Standard on email as to why even those who were in the country only on November 9 were not being entertained.
Deepak Singh, an executive with an insurance company, has all documents in place — a passport with entry and exit stamp, a copy of the Aadhaar card, a copy of statements of all Indian bank accounts for November-December 2016, a copy of the PAN card and Annex 1 form. But he was not allowed to exchange old notes for new ones because his flight for the three-month project in Canada was on November 10.
“It is unfair to include November 9 in the conditions as it was announced by the Prime Minister that all banks and ATMs will remain shut that day. No one in the RBI seems to be listening. I returned in February and this is the third time I am standing in a queue,” said Singh.
Those who stayed for a week after demonetisation say they were deterred from exchanging old notes for new ones by massive crowds outside banks during the initial phase and theirs must be considered a valid case.
Another RBI official Business Standard spoke to said, “They may have genuine reasons and problems but the message from the top (RBI management) is a strict application of rules.”
The FAQs on the RBI website state that the exchange or deposit of old notes will be permissible for “Resident Indian citizens who were abroad during November 9, 2016 to December 30, 2016”. Non-Resident Indians have time till June 30 to exchange old notes but their value must not exceed Rs 25,000.
As the queues get longer, the announcement at timely intervals by the central bank offices asks those “who were in the country even for a single day between November 9 and December 30 to leave the queue as they are not eligible for the exchange”.
NRIs are not having an easy time, either. With the exchange procedure turning into a disappointment, many who have travelled to Delhi from states far and near — Punjab, UP, Haryana, and Rajasthan — are seen squatting outside the RBI office even after the gates close at 3pm. Most are NRIs who work as labourers in West Asian countries such as Saudi Arabia, Kuwait and the United Arab Emirates. Another section of NRIs seen outside the RBI office are from Punjab and work in Canada.
Most of them do not have the customs declaration certificate, a ''mandatory'' document. “I returned to India from Riyadh (Saudi Arabia) after two years on January 31 to get old notes exchanged. It is only after reaching the RBI office that I was told that I do not have a customs certificate. Is the immigration stamp not enough? This is harassment,” Salim Ahmed said.
Satya Pal, who works in Dubai as a peon, has the same story to tell. Notes of Rs 500 and Rs 1,000 are being accepted only at five RBI offices: Delhi, Mumbai, Chennai, Kolkata and Nagpur.
The stringent screening procedure, which could take up to two hours, is also responsible for depositors not being able to meet the eligibility criteria.
Illegal channels coming up is a necessary concomitant of the cumbersome exchange mechanism. For instance, an exchange racket is in full swing just outside the RBI building in the capital under the watchful eyes of CRPF troopers and Delhi Police, offering people an instant exchange of old currency at a discount 50-90 per cent. Business Standard met a broker who offered a quick exchange of money at an 80 per cent discount.
Although the window for exchange in banks closed on December 30 for those who were in the country, there are many who missed the opportunity. The RBI is their last chance to exchange old notes.
Source URL
Sunday, 29 January 2017
wallet business
17:25
BSNL launches M-wallet
BSNL launches M-wallet
The Bharat Sanchar Nigam Limited in association with the State Bank of India has launched a ‘M-wallet’ for its mobile phone customers.
The facility enables users to carry out transactions from their mobile phones with ease without any bank account, according to a BSNL press release.
BSNL customers can download the app, SBI Mobicash, on their smart phones and those who do not have smart phones can use the facility through SMS (short message service).
The M-wallet users can deposit money into the wallet through payments made at any BSNL retailer.
They can then use the wallet for various purposes such as recharging their pre-paid connections and paying landline or post paid bills.
Facilities for payment of electricity bills and water charges through the facility would be introduced shortly.
Transfer of money from wallet to wallet and from wallet to the SBI account or other bank accounts could also be done through M-wallet.
The facility would be available to BSNL customers in Tiruchi, Karur, Pudukottai, Perambalur and Ariyalur districts progressively within a month as retailers are being covered, the release added.
Source:The Hindu
Thursday, 26 January 2017
State Bank of India
18:04
SBI installs ATM on board INS Vikramaditya
SBI installs ATM on board INS Vikramaditya
State Bank of India (SBI) has installed an ATM machine on board INS Vikramaditya, the largest warship and the latest aircraft carrier of the Indian Navy, which has a strength of over 1,500 personnel.
The ATM machine was inaugurated at the Naval Base Karwar by Rear Admiral KJ Kumar, Flag Officer Commanding, Karnataka Naval Area, and Rajnish Kumar, Managing Director and Group Executive (National Banking Group), State Bank of India.
Rajni Mishra, CGM (Bangalore Circle), S M Farooque Shahab, CGM Designate (Bangalore Circle) and R K Mishra, CGM (Personal Banking Unit) of the SBI were also present at the inauguration.
The ATM would service the requirements of Naval personnel on board the ship, which is a full-fledged township in itself. The facilities offered by the SBI include cash withdrawals, generation of mini-statements, access to bank balance details and change of PIN numbers. The facility would in future be upgraded to a recycler machine with cash deposit facility.
Additionally, facilities such as cash transfer, card-to-card transfer, credit card payment, mobile number registration and updation would also be available
Source:BankingUpdates
Thursday, 5 January 2017
volume of transactions
06:55
BHIM App, Launched by PM Modi, Explained in 10 Points
BHIM App,
Launched by PM Modi, Explained in 10 Points
HIGHLIGHTS
- PM
Modi launched the Bhim app today for simpler payments without cash
- Through
the app, you can make payments using just a phone number
- BHIM
also supports USSD payments, which work even on basic phones
Prime
Minister Narendra Modi today launched BHIM, described by him as a brand-new app
that will amount to “a world wonder.” BHIM - Bharat Interface for Money - is
named for Dr BR Ambedkar, said the PM, and is positioned to play a big role in
the government’s push for digital transactions.
"Be
it a smartphone or a feature phone of Rs 1,000-1,200, BHIM app can be used.
There is no need to have Internet connectivity," says PM Modi. "One
only needs a thumb. There was a time when an illiterate was called 'angutha
chhaap'. That has changed. Your thumb is your bank now.”
BHIM
allows customers to transact electronically without having to use a credit or
debit card, or by creating and storing a mobile wallet.
Here is your 10-point guide to BHIM:
- The app allows you to easily transfer money or make a payment from your bank account using only your phone number. If the shopkeeper uses the BHIM app too, just open the app, choose “send money”, and type in the amount and the merchant's phone number to make the payment. The money will be debited from your account, and credited to the merchant's bank account which are linked by you and the vendor to the BHIM app.
- BHIM is now available as an Android version download now, and iOS is coming soon.
- The app also allows you to scan a QR code. The merchant can generate his QR code through the BHIM app. To pay him, you'd need to tap the Scan and Pay button in the app, and then scan the QR code.
- Even without a smartphone, anyone can use BHIM to make payments.You need to dial *99# from any kind of mobile phone, and this will show a menu - by typing in different numbers you can choose to send money, check your balance, or see transaction history.
- To send money, for example, you'd type '1' and hit send, then type '1' again to select mobile number. Next, you'd type in the number and the amount, and then a PIN that can be generated using BHIM. This will work on any phone - even Rs. 1,000 feature phones - without an Internet connection.
- Shopkeepers can use the BHIM app and receive money from a smartphone, or if the customer has linked a bank account and her Aadhaar ID, then the merchant can use Aadhaar Pay, an app that was soft-launched days ago. For this, the merchant has to have a smartphone (even a basic Android phone will do) and a Rs. 2,000 fingerprint reader. This is currently being distributed free in Aadhaar Payments pilot projects around the country.
- On the shopkeeper's phone, the customer types in her Aadhaar number and chooses her bank. Then, the shopkeeper uses the fingerprint reader for instant confirmation to complete the payment. The customer don't need to carry her Aadhar card, or use a phone, only the merchant needs these.
- With a mobile wallet app, you have to load money in the wallet before you can use it. With BHIM and all UPI (United Payments Interface) apps, you can directly connect your phone to your bank account - like a debit card. Payments are happening directly from and to bank accounts, so merchants don't have to worry about transferring wallet earnings to the bank either.
- There is a Rs. 10,000 per transaction limit, and Rs. 20,000 per day for BHIM.
- All UPI-connected banks accept BHIM - this includes all major Indian banks including SBI, ICICI, Axis, and HDFC. Even banks not connected to UPI can receive money through BHIM through IFSC, an 11-digit code assigned to every bank branch by the Reserve Bank of India.
Source:Gadget360
Sunday, 11 December 2016
volume of transactions
08:24
HOW TO SEND MONEY BY USING 99
HOW TO SEND MONEY BY USING 99
After the announcement of demonetization by PM Modi, need for going cashless and digital has increased. Today, there are various methods available for transacting cashless such as Credit/ Debit Cards, e-wallets, Prepaid Cards, UPI app besides the traditional banking methods, cheque/ DD/ NEFT/ RTGS etc.
One of the option is sending money through USSD. Best of the USSD is that it doesn’t require a smartphone and internet connection. USSD can be used on any basic phone. USSD stands for Unstructured Supplementary Service Data which is built by National Unified USSD Platform (NUUP).
in this article we have explained, how to use USSD and transfer money through USSD.
You must have linked your mobile number to your bank account to use USSD
Dial *99# from your mobile.
USSD can also be used in regional languages, for example to use in hindi dial *99*22#.
Type 3 letters of your Bank Short Name (for example SBI for State Bank of India, HDF for HDFC Bank) or first 4 letters of Bank IFSC code (for example SBIN for State Bank of India).
Once you enter Bank short name or IFSC, it will display 7 option on the next screen, which will answer your following questions.
- How to check account Balance through USSD?
- How to get mini statement showing your latest 5 transactions through USSD?
- How to send money through USSD using MMID
- How to send money through USSD using IFSC Code
- You to get your MMID (to use it to receive money from others)
- How to change your MPIN.
- After dialing *99# and choosing your bank (as explained above), reply with 3.
- Enter Mobile Number of the recipient
- Enter MMID of the recipient (which he can get through option 5)
- Enter the amount you want to transfer
- Enter your MPIN and the amount will be transferred.
- If you want to send money using Account Number and IFSC Code, use option 4 and enter account number, IFSC and amount.
- Daily transaction limit for USSD banking
USSD payment method can be used for sending money from Re 1, to Rs 5,000 per transaction.
Charges for USSD transactions
Rs 0.50 per transaction are charged for USSD transactions, which are added in mobile bill, which are waived off till December 31.
Using USSD is easy but sometimes, it is irritating, when it throws errors ‘No connection message’ and ‘External application down’.
Source:Bankers Club
Saturday, 3 December 2016
Reserve Bank of India
19:57
History of Demonetisation
History of Demonetisation
This is not the first time the Indian governments has demonetised currency notes. RBI first demonetized Rs1,000 and Rs 10,000 banknotes in January 1946. Banknotes for Rs 1,000, Rs 5,000 and Rs 10,000 were reintroduced in 1954. However, Rs 1,000, Rs 5,000 and Rs 10,000 were once again demonetised in January 1978 once again. In 1978 the then Government said the move was aimed tackling the issue of the black money which had grown to large proportions at that time. The measure was enacted by passing the High Denomination Bank Note (Demonetisation) Act, 1978. The law’s preamble said that this was an Act to provide in the public interest for the demonetisation of certain high denomination bank notes and for matters connected therewith or incidental thereto.
However, Rs 1,000 was big money in those days, clerks earned Rs 200-300, most officers earned between Rs 500- 1500 and even President of India earned a mere Rs 10,000, while Managing Directors of even the largest corporation earned just Rs 5,000. Most Indians in those days had never seen such a note in their lifetime.
Why was the decision taken ?
Prime Minister Mr Modi had promised to combat the menace of black money when he came to power two-and-half years back, pledging to crack down on parallel economy in india which has seen tax to GDP ratio being abnormally low. While the Indian economy grew by 30 % during 2011 and 2016, the circulation of money in the economy increased by 40 %. However circulation of Rs 500 notes increased by
76 % and of Rs 1000 notes by an astounding 109 %. Which means the demand for high denomination notes grew at a faster rate, causing suspicion that much of this was being hoarded as black money.
“This measure was necessary to maintain the financial integrity of our economy,” said Secretary Economic Affairs Shaktikanta Das. Demonitisat-ion is a move which had been suggested by several quarters.
The move will also check fake note flows, a bane which has been dogging the Indian financial markets for years. The Reserve Bank said while the Indian currency’s security features have not “been breached”, the fake notes being pushed by Pakistan’s spy agencies were similar to legal tender and were causing confusion in the market. Currently there are 16.5 billion legal Rs500 notes and 6.7 billion Rs1000 notes. But estimates point to larger numbers of high denomination notes circulating in the market, clearly pointing to fake currency being pushed into india in large numbers.
The Government’s decision to demonetise Rs 500 and Rs1,000 currency notes will also push India towards a cashless economy. “This one decision will change the way the people spend and keep their money,” asserted Finance Minister Mr Arun Jaitley. India has been trying to push the country’s cash dependent economy towards paperless transactions. It published a draft paper of sops and incentives, which may be considered for those opting for online and plastic payments. However, the move has remained nascent at best till now.
High-denomination banknotes account for 86 % of the 1,64,000 crore rupees of currency in circulation. With inflation raising prices, most people preferred higher denomination notes. However, by now taking steps to discourage high value notes, the government could push more people to opt for e-commerce and plastic money. Analysts believe the move to scrap high denomination notes will now force people to use their accounts and financial technology for transactions. Estimates say the mobile commerce market in India will grow from a current $2 billion to $19 billion by 2019.
Officials point out that studies by McKinsey suggest large-scale adoption of digital finance by emerging economies could boost their GDP by up to 6 % The study says “India could see a boost of $700 billion, an 11.8% increase by 2025. This additional GDP could create up to 21 million.” The idea is to move society towards electronic transactions and away from cash, as this helps us monitor money flow and check black money.
Real Estate
Real estate sector, particularly property resale market, is expected to take a hit because of the decision. With large caches of black money eliminated, black money deals are expected to reduce in the realty sector. This is expected to bring down prices of property and bring about transparency in the industry which unfortunately has earned a dubious reputation of being flush with black money. According to an expert, prices coming down to more reasonable levels in the housing market cannot be ruled out. In the immediate future, the sector will be under serious pressure with volume and number of transactions in residential and land markets seeing a substantial downward trend.
The author is a senior journalist based in New Delhi. Views expressed are personal
Source:Employment News
Saturday, 29 October 2016
Money
18:13
ICICI bank launches Money2India Europe scheme
ICICI bank launches Money2India Europe scheme
The British branch of ICICI Bank, ICICI Bank UK Plc. today announced the launch of online money transfer services to facilitate transaction from any bank accounts in Sweden, Norway and Denmark to any recipient account based in India. The service called ‘Money2India Europe’ verifies the credentials of the customers over video call from Money2India Europe website. The website is owned by ICICI Bank UK Plc. “Using this service, anyone residing in these countries can initiate money transfer round-the-clock for 365 days from their local bank account to any bank account in India in a quick and convenient manner,” ICICI Bank’s spokesperson said. “Money2India Europe service is now available in twenty countries in Europe”, he added. The service is completely online and can be completed within fifteen minutes.
It eliminates the need to courier the Know Your Customer (KYC) documents. ICICI Bank UK Plc. has partnered with Inpay A/S, a global payments service provider, to bring this service to consumers in Sweden, Norway and Denmark. “With NRIs being away from the country, digital channel becomes a very powerful tool for them to connect with India. With the expansion of Money2India Europe, we intend to comprehensively fulfill the money transfer needs of the NRI diaspora in Sweden, Norway and Denmark,” Vijay Chandok, Executive Director, ICICI Bank said.
Jacob Tackmann Thomsen, CEO and founder of Inpay A/S said, “Sweden, Denmark, and Norway are three of the most innovative markets in Europe, where digital payment innovation is ahead of the global developments. At Inpay we are very pleased to support one of the leading global banking brands and its proprietary remittance platform by providing bank account collections.” Euro (EUR), Swedish Krona (SEK), Norwegian Krone (NOK) and Danish Krone (DKK) are the currencies allowed for money transfer service by the Bank. Registered users can also track the status of their online transfers. It takes one working day for ICICI bank customers in Europe to transfer their money to any ICICI bank account in India and two working days to transfer their money in Europe to any other bank account in India.
Connectivity is one of the key requirements of the modern world. There are many Indians living and working abroad, who need to transfer money to their family’s bank accounts in India. Money2India Europe provides a fast, easy and accurate platform to do so. This site is relatively popular among users in the Germany.
It gets 49.2% of its traffic from Germany. This site is estimated to be worth €11927 and is ranked ahead of its competitors like Moneytransfer.ie, Exchange4free.com, Sendingmoneytoindia.com and Westernunionmoneytransfer.com. It is a promising and a highly useful venture by ICICI bank’s UK branch, launched in a continent where online money transfer technologies are ahead of global advancements.
Source:IndianCEO
Monday, 24 October 2016
security
23:00
Cyber security: making banking safer
Cyber security: making banking safer
Protecting the banks’ crown jewels – money and personal data – may have become more difficult than ever, but financial institutions have fortified their defences with a little help from their fintech friends.
Cybercrime is the greatest existential threat banks face today. According to The Depository Trust & Clearing Corporation’s latest Systemic Risk Barometer Survey, cyber risk remained the number one concern globally among financial service professionals, with 70% of all respondents citing it as a top five risk.
This anxiety is well founded. Verizon’s 2015 Data Breach Investigations Report found that the financial services sector experienced 277 confirmed breaches in 2014, second in number only to the public sector.
An example of a cyber attack uncovered in early 2015, dubbed Carbanak, saw a criminal gang employ an advanced persistent threat-styled attack to successfully steal £650m ($980m) from more than 100 financial intuitions worldwide over a two-year period. One firm had $10m stolen via its online platform, according to reports.
While money is an obvious enticement, cybercriminals also look to steal valuable customer data held by banks. Simon Hales, chief information security risk officer at HSBC, says: “The current reality is that threats realised through digital channels can also target the information financial institutions hold. It depends on the motivations of those committing cyber attacks, which are increasingly global and diverse. Furthermore, the exposure also extends to the financial institution’s partners and external parties.”
The 2014 attack on JPMorgan Chase illustrates the potential magnitude of a cyber breach: hackers compromised 76 million personal accounts and more than 7 million small business accounts. Public confidence in the security of banks was shaken by this attack, considered to be one of the biggest breaches in history.
As Troels Oerting, group chief information security officer at Barclays and former head of the European Cybercrime Centre, points out: “The bank is all about trust and keeping their customers’ sensitive information safe.” A significant breach may prove costly in terms of stolen money or large regulatory fines, but it can also destroy the client relationship beyond repair.
Systemic importance
Cybercriminals also target financial institutions because of the critical role they play in a functioning economy. Governments and regulatory authorities have become acutely aware of the impact a major threat cybercrime might pose to the resilience of the financial system as a whole.
David Navetta, partner at law firm Norton Rose Fulbright (NRF), says: “Governments have a special interest in ensuring that the financial industry is secure because the global economy depends on the movement of money and open access to capital. This encourages much more cross-jurisdictional co-operation, as well as careful scrutiny of banks and financial institutions’ security practices.”
For example, on November 12, 2015, the US and UK conducted joint offline ‘war games’, dubbed Operation Resilient Shield, with global financial firms. The exercise focused on sharing information, incident response handling and public communication.
The European Parliament and European Council are in final negotiations over the Network and Information Security Directive (NISD) aimed at ensuring critical infrastructure in Europe is adequately protected against cyber attacks. Marcus Evans, a partner at NRF, says: “The real development [in the directive] is the formalised sharing of information between EU member states, as well as in due course with third-party countries such as the US.”
Governments and regulators are also paving the way for increased information sharing within national borders. For example, the US Senate passed the Cybersecurity Information Sharing Act of 2015 on October 27, 2015, encouraging sharing among private entities and between private entities and the federal government.
Bank-to-bank intelligence
While some banks remain reticent about sharing information among peers, Mr Oerting dismisses the idea that security is a competitive differentiator. “Catching crooks is something that we should all be united around,” he says, adding that if Barclays is hacked, then it is likely another bank will face the same attack. “We should share information so that the other bank can increase its security before being attacked,” he adds.
Orion Hindawi, co-founder and chief technology officer at cyber security start-up Tanium, agrees. “We know of hundreds of cases where customers were alerted by their peers which allowed them to fortify their defences,” he says.
“Criminals collaborate, learn from each other, leverage each other’s code and share system access. Yet on the flip side, we shy away and don’t want to talk about it,” adds Greg Day, vice-president and regional chief security officer, Europe, Middle East and Africa, at network and enterprise security company Palo Alto Networks.
In order to address this disjunction, 16 months ago Palo Alto Networks teamed up with Fortinet, Intel Security and Symantec to create the Cyber Threat Alliance. The security vendors participate in a technical collaboration forum to share information in real time. “With hundreds of thousands of customers, we have a huge crowdsourcing ability to see cyber attack trends,” says Mr Day. “We can leverage that data to provide better insight into what will hit our clients next.”
There are myriad industry alliances facilitating intelligence sharing and co-operation between governments, law enforcement and the financial services industry, including in the National Crime Agency’s National Cyber Crime Unit, the Cyber Defence Alliance, the Financial Services Information Sharing and Analysis Centre and the City of London’s Police National Fraud Intelligence Bureau, to name just a few. The next step must be to join up these separate initiatives, argues Don Randall, the Bank of England’s former head of security and chief information security officer.
Mr Randall also believes that suspicions and attempts should be included in the scope of shared information. “The main industry alliances are predominantly focused on actualities. But if a group of hackers unsuccessfully attempted to breach five major banks at the same time yesterday morning with the same methodology, we don’t have that data at the moment,” he says. “We have to get into the position of sharing this information because invariably the attempts will turn into real attacks.”
Raising the complexity bar
A number of developments have combined to boost the difficulty banks face in defending themselves and their customers against cybercrime. Overall, the modernisation and mobilisation of financial services is a fundamental shift that has seen the majority of financial transactions now conducted via cyber means, i.e. mobile phones, tablets, watches, cloud, etc.
Banks are constantly worried about whether their online customers are secure, using out-dated software or vulnerable to fraud. As oft bemoaned, the customer is the weakest link. Employees are also more mobile: working from home or a coffee shop, at a conference, satellite office or customer site, which all bypass perimeter or network-based security that a bank has already invested in.
Laurance Dine, managing principal for the Verizon Investigative Response Unit, highlights how end-user behaviour is changing due to the ‘Internet of Things’ (IoT). “The new generation wants to have access to everything, so trying to secure every single device is a difficult task,” he says. “Ongoing employee training and security awareness programmes are critical to maintain within every business.”
In addition, the financial industry has seen a lot of merger and acquisition (M&A) activity and global expansion. “Most banks face great difficulty in tying together different infrastructures, data bases and computer assets across multiple jurisdictions,” says Ben Johnson, chief security strategist at next-generation end-point security company Bit9 + Carbon Black. “Trying to defend their digital landscape in a cohesive, all-inclusive way is a huge challenge for them.”
Differentiating the motive and actors behind cyber attacks can help determine the proper level of response, resilience and budget. These range from organised crime syndicates, state-sponsored groups and militaries, hacktavists trying to make a point and insiders attempting to steal information for personal gain. “If the intention is to steal through organised crime or nation-state espionage, then the sophistication level will most likely be higher,” says Mr Randall. “But if the objective is to take down, disable or irritate, then simple old-fashioned methodologies can do the job.”
These categories are showing signs of blurring. “Some use hacktavism as a façade for a nation state attack. We also see co-operation between nation-states and organised crime,” says James Chappell, chief technology officer and co-founder at Digital Shadows, a UK-based cyber intelligence start-up. “Attributions are more difficult now because it is not easy to unpick who the culprits are. Luckily forensics is also developing at pace to help with that.”
Growing sophistication
Most experts report greater sophistication in cyber attacks. For example, cybercriminals are hitting banks with advanced distributed denial-of-service (DDoS) attacks, threatening to shut down their websites unless they pay a ransom. On November 30, the Financial Times reported that a group of hackers targeted three Greek banks and demanded 20,000 Bitcoin ($8.1m) from each institution.
DDoS attacks are also being used as smokescreens for other crimes. “As a bank automatically reacts against this very loud attack, criminals might be doing something around the back,” says Mr Oerting. “We need to have adaptive and flexible defences, so we aren’t just looking at where we hear noise but also our back doors.”
Mr Navetta recounts a client experiencing a cyber fraud in which an email referencing a secret M&A deal was sent to a person in accounting, purportedly from the CEO. The email convinced the accountant to wire transfer millions of dollars to a Hong Kong bank, which NRF has been trying to recover for its client; while Mr Chappell reports instances of hackers proactively seeking out digital developers to obtain pre-released versions of a bank’s website code.
Adam Ely, co-founder of San Francisco-based start-up Bluebox Security, has witnessed a rapid growth in malware targeting banks’ mobile apps. “We are at a tipping point where the banks are starting to invest more heavily in mobile technology and related security because the hackers are following them into this space,” he says.
In addition, cybercriminals are continually refining their tools. Richard Boscovich, assistant general counsel at Microsoft’s Digital Crimes Unit, says that the new bots being developed today are smaller and more targeted. “We are seeing a rise in Trojan downloaders, which drop other malware. One example is the Shylock banking Trojan, which primarily targeted UK financials. We have to adjust our strategy both legally and technically to adapt to the different things they are doing,” he says.
A losing battle?
In many ways banks appear to be fighting a losing battle, particularly when it comes to organised crime or state-sponsored adversaries. As Mr Dine says: “We are facing ‘hackers for hire’: people that are paid to hack all day specifically targeting financial institutions.”
“An underground economy has cropped up – crime as a service is a reality,” adds Mr Chappell. He reports that the more advance techniques, which usually begin in the realms of the nation state, are now appearing in exploit kits and software that can be bought online.
Launching attacks has become much easier, adds Alex van Someren, managing partner of early-stage funds at Amadeus Capital Partners. “The tools for directing various forms of attacks against organisations are becoming increasingly automated, so it is easier for people who do not know much about hacking to nevertheless be successful in building attacks against enterprises,” he says.
But while attackers are stepping up their game, the industry is responding with new and innovative defences, Mr Chappell emphasises. “Together as an industry we have become much better at sharing information on attackers and how these crimes are carried out. The types of tools and services available to defend us are also progressing – there is great innovation in this space. We are part of an ecosystem of security companies that are helping banks with these problems,” he says.
Cyber security start-ups
As an investor that focuses on cyber security start-ups, Mr van Someren believes that this space presents impressive growth opportunities. In January 2015 he founded a start-up accelerator, Cyber London, to foster a more robust cyber security ecosystem in the UK. The programme helps start-ups grow their businesses faster by connecting them with customers that might help trial their products.
He is convinced that working with start-ups is the way forward for banks. “If a bank builds something in house, only they pay for it and only they get the benefit. If a start-up builds a solution externally, other banks help pay for it and it benefits the industry more generally,” he says.
Like many other banks, HSBC has an innovation investment programme that looks for organisations with innovative technology that it can help fund as well as internalise. “This engagement helps to evolve our capabilities to thwart our adversaries,” says Mr Hales. “It informs us what is possible and allows us to test out new ideas.”
At Barclays, Mr Oerting has a particular interest in start-ups exploring blockchain use cases and intelligent authentication technology. “We need to be engaged in order to build in security that is convenient and trustworthy. This will be a differentiator in the future,” he says.
Diverse solutions
Threat intelligence and next-generation data loss prevention products are areas that Mr van Someren sees attracting interest. Amadeus Capital currently invests in Exonar, a firm that identifies and controls sensitive information flows.
A few examples of the diversity of cyber security start-ups include Tanium and Bit9 + Carbon Black, whose solutions target end-points, for example, ATMs, point-of-sale terminals, servers, desktops, laptops and cloud. According to Mr Hindawi, banks can roll out Tanium’s software for monitoring and changing end-point activity. Deployed on just one server, it can scale to millions of end-points.
Mr Johnson likens Bit9 + Carbon Black’s software to a surveillance camera. “A client can install the software on each computer in the environment and it monitors end-point activity. The client can detect suspicious behaviour, respond faster to that behaviour and remediate it,” he says.
Digital Shadows, on the other hand, provides a complete view of a customer’s digital footprint, identifying defence weaknesses and data loss. It also tracks attackers by looking at their tactics, techniques and procedures. By monitoring malware, how it is being used, the relative prevalence of different malware types and criminal techniques, clients can better align their defences to defend from those attacks, explains Mr Chappell.
And Bluebox Security focuses on securing mobile apps. The technology allows organisations to produce self-defending applications, according to Mr Ely. “If another app tries to modify the Bluebox-secured banking app, the latter can defend itself. It can respond by either shutting down and notifying the user of the problem, or preventing the attack to keep malware at bay,” he explains.
Much more than IT
In order to combat cyber threats and engage with innovative security technology, over the past two years many banks have elevated the chief information security officer to a more strategic role.
The financial sector has the highest percentage (88%) of chief information security officers, followed closely by IT/telecom (86%), according to the Governance of Cybersecurity: 2015 Report by Georgia Tech Information Security Centre. In addition, the sector increased the percentage of chief information security officers/chief security officers reporting to the CEO/chief operating officer.
“The chief information security officer role has been elevated to a truly C-level position in banks,” says Mr Hindawi. “They are being moved out of IT and placed either under the chief operating officer or report directly to the board. Even if they don’t have direct access to the board, they are often invited to give a cyber update and educate on the new existential risk.”
The chief information security officer’s remit should include policy and standards, education and awareness, intelligence and investigations, and forensics, providing the bank with a threat landscape, according to Mr Randall. He also recommends including a geopolitical analyst in the cyber team, a suggestion that may have raised eyebrows a few years ago but is more accepted today.
Barclays, for one, has adopted this management structure. Mr Oerting, who took up the chief information security officer role at Barclays in February 2015, reports directly to Michael Harte, Barclays’ chief operations and technology officer.
He drafted the bank’s first security strategy focused solely on cyber rather than an overall technology strategy. It includes four key priorities: protect the ‘data estate’, regardless of whether they are on premise or in the cloud; enable the bank to go to market in a fast but safe manner; innovate, including partnerships with accelerators and start-ups; and educate.
“Education is aimed at the whole staff, regardless of whether they work in communication, IT, a branch or HR – every employee must know that security is in our DNA,” says Mr Oerting. “I believe that culture eats strategy for breakfast. Any management can send out new strategies but if it is not in the cultural of an organisation, then employees won’t implement them.”
Barclays has three cyber centres: a security operations centre; a solutions and innovation centre, with an internal ‘white hat’ hacking team; and a security control centre, which includes third-party vendors that report to Mr Oerting. “We now have a global security system that applies to the whole bank,” he says.
HSBC has taken a different approach and drives information security risk management through the chief information security officer, which reports into the chief information officer, and a chief information security risk officer, which reports into the chief risk officer. This decision was taken following the application of an Operational Risk Management Three Lines of Defence framework.
As chief information security risk officer, Mr Hales is responsible for setting policy and strategy, and aligning both to an organisation’s risk appetite around information security incidents. He also ensures that the businesses receive independent advice and guidance regarding operational risks. The chief information security officer, on the other hand, is responsible for day-to-day operational controls and development of technical controls.
Mr Hales continually challenges existing controls, not only to see if they are working effectively, but also to ascertain if they are fit for purpose. “We research current threats, not just the ones that impact us directly but those that are materialising in other business areas that may impact us,” he says. “This includes geopolitical concerns and other non-technical areas where threats materialise.”
The interplay between the lines of defence provides HSBC with greater assurance that it is getting security right. Mr Hales says: “The design, supported by audit as the third line of defence, ensures we are better positioned to manage the risk holistically, and provides management and regulators with a greater level of assurance.”
Source:The Banker.com
Monday, 25 April 2016
wrong payment
08:48
Sending money to the wrong bank account ?
Sending money to the wrong bank account ?
If you've sent money to the wrong bank account, whether it's 10p or £10,000, unfortunately the payment can't simply be reversed. Here's what to do if you accidentally make this mistake plus how to avoid doing it in the first place.
OK, so what exactly do you mean by 'sending money to the wrong bank account'? In the world of internet banking millions of electronic payments are made every day, but a slip of the finger and the wrong sort code or account number keyed in and you could end up sending a payment to the wrong account.
That's because the only information banks use to identify payees is the sort code and account number, and not the recipient's name, meaning if these details are wrongly entered the cash could end up in a stranger's bank account. And the worst thing about it is that erroneous payments cannot be automatically reversed.
So what can I do if this happens to me? You need to contact your bank straight away to let it know about the mistake. While banks can't stop payments that have already been made, contacting it as soon as possible will help speed up the process of sorting it out. It’s a good idea to keep a note of all correspondence you have with the bank and also to make note of exactly when the error was made. If you know the mistake you made (eg, you used the wrong sort code), then make a note of that too.
But what if I don't realise straight away that I've made a mistake? Before April 2014 there was nothing in place to help people who found themselves in this sticky situation. Thankfully, banks have now signed up to a voluntary code, which means that as soon as someone tells their bank they have made a mistake with a payment, the bank will act within two working days. And it doesn't matter if you discovered your mistake after a week or even a year... though it's good financial sense to keep an eye on your account(s) to make sure your payments have reached the right recipient.
These measures were further strengthened in January 2016. Now, where there's clear evidence of a genuine mistake, your bank will contact the receiving bank on your behalf requesting that the money isn't mistakenly spent by the person who accidentally received it.
Although Faster Payments says the improvements cannot guarantee you'll get your money back, they mean that, for the first time, in straightforward cases where the person who accidentally received the money into their account does not dispute returning the money, it will be returned within 20 working days.
In all cases the person who accidentally receives the funds will be contacted by their bank and given the opportunity to dispute it. Safeguards are also in place to ensure that where the circumstances of the claim are less clear cut, no funds are removed without the consent of the recipient.
What your credit score really means
If the bank is unable to reclaim the money that was sent to the wrong account immediately, for example if the person you accidentally sent it to refuses to return it (more on that later), you’ll be notified of the outcome of the bank’s investigation within 20 working days from the point that you let it know, but it will usually be much sooner than this.
So whether you get the money back and how quickly depends on whether the person who wrongly receives the money admits that it is not rightfully theirs. Further complications can arise if the recipient has spent the money, as the bank cannot take money out of their account if it'd cause them to enter their overdraft.
OK, sounds good, but what if I'm not happy with the outcome? If you follow this procedure and you’re still not satisfied with the outcome you can first of all follow your bank's formal complaints procedure. Banks are required by law to have a written complaints process, so if you can't find details on your bank's website, ask it to send it to you. The bank then has eight weeks to respond to your complaint.
If you're unhappy with the outcome, you can go to the Financial Ombudsman. It can help sooner if your bank has sent you a rejection letter suggesting you use the Ombudsman. For more information on how to complain read the guide to Your Financial Rights.
You mentioned that the person who accidentally receives the money may refuse to give it back. Are they allowed to do that? No is the simple answer. But it isn't that simple. If you find that a big wad of money has landed in your bank account that you’re not expecting, then don’t rush out and buy that new Prada bag or Porsche. You're not legally required to contact your bank and let it know about any unexpected payment.
However, if you do find unexpected cash in your account, you should still let the bank know. It's illegal to spend the money, so your best bet is to just keep a note, as explained above, of the amount that came into your account, the date it appeared, and any correspondence that you have with your bank about it.
I’m a bit concerned this might happen to me, what can I do to avoid it? Don’t worry, part of the voluntary agreement also saw banks put in more processes to make it difficult for someone to be able to do this, such as getting rid of the auto fill function. In addition, there are things you can do to avoid this.
The best advice, especially if you have a big sum of money to transfer, is to send a small amount first. Check with the recipient to make sure it gets to the intended account, then send the larger amount using the same details.
Other simple tips include always double-checking the sort code (you can check it or find sort codes at Vocalink) and account number when sending a payment and checking the amount and payment reference, particularly if you are paying a business or paying a bill.
Source:Money Saving Expert
Reserve Bank of India
07:52
Sensitise public against unsolicited offers: RBI to banks
Sensitise public against unsolicited offers: RBI to banks
Concerned over rising incidents of unscrupulous elements duping the public, RBI today asked banks to prominently display warnings that people should not respond to unsolicited offers through e-mails and phone calls. "We believe that the absence of financial literacy and lack of alertness to fraudulent schemes/calls are the main reasons behind the innocent depositors falling prey to such schemes," the Reserve Bank said in a notification.
These episodes, apart from impacting the public at large, have repercussions on the banking sector as the money that is misappropriated by these unscrupulous entities should have come to the banking system augmenting banks' deposit base, RBI said. It has come to the notice of RBI that customers receive telephone calls relating to their winning lotteries/prizes and asking them to deposit money in an unknown account, following which the amount of lottery would be remitted to them or credited to the account they would advise. Once the customers play along, they remit the required amount, apart from divulging details of their accounts to fraudsters.
RBI suggested that banks as part of their customer education efforts should consider designing suitable posters, pamphlets, flyers or notices containing such messages. The messages RBI wants lenders to display include 'Never respond to unsolicited offers of money received through mails/phone/other media; No one really gives you money for free and Be careful while investing in seemingly attractive schemes offering high returns'.
There have been several instances of the general public getting tricked by various schemes for mobilisation of funds by way of deposits/investments, RBI said, adding that such programmes are often projected as investments. As many as 861 bank advance-related fraud cases of Rs 1 lakh and more, totalling Rs 4,920 crore, were reported in the first half of 2015-16. In 2014-15, 1,651 such cases were reported with an amount of Rs 11,083.11 crore.
Source:BankingUpdates
Sunday, 27 December 2015
switzerland
09:34
Switzerland to hold referendum on banning private banks from creating money
Switzerland to hold referendum on banning private banks from creating money
A radical initiative to strip private banks of their power to “create money” and make it exclusively a central bank privilege has gathered enough support for the Swiss government to announce a referendum on the issue. A vote in favor may result in a return to 100 percent reserve banking.
“Banks won’t be able to create money for themselves anymore, they’ll only be able to lend money that they have from savers or other banks, or even, if necessary, money that the Swiss National Bank has provided them,” the campaign said in a statement on their petition website.
As soon the petition concerning changes to the Swiss banking system had received more than 100,000 valid signatures, the Swiss government confirmed it would hold the referendum, according to the Telegraph. The date when the country will vote to decide whether private banks should be keep their power of creating money has not yet been set.
The move comes as part of the Swiss Sovereign Money Initiative (known as the Vollgeld-Initiative in German) that seeks to put an end to financial speculations. The group is concerned with the current state of affairs in traditional fractional reserve banking, where real coins, banknotes and central bank liabilities account for only a minor part of money in circulation, while most of it exists as electronic cash created by private banks.
“Most people believe that the money they have in their bank accounts is real money... This is wrong! Money in a bank account is… a promise the bank makes to provide money, but it is not itself legal tender,” they group explains in their statement.
The initiative claims that it strives to change the system so that it complies with the Swiss Constitution, guaranteeing safety and avoiding such phenomena as finance bubbles and empty money.
If the change is introduced, Swiss banks would have to look for a workaround to continue providing their clients with the usual set of services.
This won’t be a first referendum on monetary policy in the recent history of Switzerland. The Swiss voted against a law that would increase country’s gold reserves from 7 percent to 20 percent back in 2014, despite early polls showing increasing support for the initiative.
