The Reserve Bank has reported cyber fraud amounting to INR 21,367 crore between April and September 2024, marking a tenfold increase compared to the previous year. In light of this alarming rise, the Mumbai Consumer Panchayat has appealed to Union Finance Minister Nirmala Sitharaman to address the issue seriously and include provisions for insurance coverage for cyber fraud accounts in the upcoming central government budget.
Advocate Shirish Deshpande, the working president of the Mumbai Consumer panchayat, highlighted in a letter that the amount of digital fraud during the same period in 2023 was INR 2,623 crore, which has escalated to INR 21,367 crore within a year.
The panchayat has recommended that the central government ensure insurance coverage for such accounts in the forthcoming budget. Additionally, banks should be mandated to reimburse the affected customers within seven days if their deposits are lost to cyber fraud. The panchayat suggested that banks could recover the reimbursed amount through a dedicated insurance scheme.
The panchayat also pointed out the current limitation of INR 5 lakh for insured deposits when a bank goes bankrupt, calling it unfair and illogical. They have requested that the Finance Minister ensure 100% insurance coverage for all types of deposits across all banks. To fund these insurance schemes, the panchayat proposed that the cost of the insurance premiums could be deducted from the depositors' total fund of INR 78,000 crore.
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