Concerned over rising incidents of cyber crime, the Reserve Bank of India has suggested banks to put in place a strong whistle blowing system as well as reward employees who help prevent frauds. Appropriate mechanisms need to be established in banks…including transaction monitoring teams in banks and to investigate them (disputes or suspicions raised by stakeholders) thoroughly. Banks should have a well publicised whistle blowing mechanism, RBI said.
This suggestion is part of the central bank’s guidelines on information security, electronic banking, technology risk management and cyber frauds.
RBI further said that employee awareness is crucial to fraud prevention.
“A positive way of creating employee awareness is to reward employees who have gone beyond their call of duty, and prevented frauds. Awards may be given to employees who have done exemplary work in preventing frauds,” the RBI said.
One has no idea or means of knowing whather the RBI has, before venturing to and in aadvising its constituent, applied its mind fully to all the aspects, besides positive ones, equally the negative ones.
With the object of providing some useful information, reproduced below, the comments in my Blog, with particular reference to an article posted @ Indiancorplaw , titled,- Caution in Whistle Blowing >>
ETHICAL AND SOCIAL ISSUES in THE INFORMATION AGE
“The subject write-up is, in the nature of things, seen to have been limited only to those areas which are directly covered in the cited court case. In my perception, however, in order to have an incisive appreciation of the concept of – whistle blowing, and use of it as an effective tool, or otherwise, for accomplishing good governance in , besides others, government, public and corporate sectors, one requires to take a note of certain other related aspects.
To name some: –
>Is the conceptualised ‘whistle blowing’, as a public policy, good or bad from the socioeconomic point of view; that is, – either ethically or morally?
>How ‘whistleblower’ is different, and in what respects, from the other commonly known ‘informer’?
>Why it is of greater relevance and importance, especially in today’s context, while in the midst of the ongoing overtly heated debate around the globe on as to – how to take on corruption; and so on and so forth.
Interestingly, a random search of the popular websites (e.g. Google) reveal that they have in store a whole lot of material to serve as useful guidance on all such related or like aspects.”