KATHMANDU, March 28: Stakeholders of the banking sector have stressed the need for introducing necessary laws to address new types of threats in the banking business caused by the misuse of advanced technology.
Speaking at a program on Saturday, Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari said the advancement in the information technology has helped increase new types of banking frauds, which the existing laws have failed to check. “There is an urgency to revise the laws in line with the growing threats due to new technologies,” Adhikari said.
In 2016, the government amended the Banking Offence and Punishment Act targeting to take stern action against individuals involved in fraudulent cases in the financial sectors. However, the relevance of the law has faded in the context of the fast-emerging technology, according to Adhikari.
Time and again, different methods of hundi have been uncovered by the authorities. Last year, the Department of Revenue Investigation tapped the hundi network being operated from the Indian land, unlike in the past when such networks were active in Nepal. In addition, the increasing use of cashless transactions and verbal communication means of banking have been adding up risks in financial transactions.
Inspector General of Police Shailesh Thapa Chhetri sought effective coordination among the Nepal Police, NRB and public attorneys, arguing that it could help control new methods of frauds in the financial sector. He also stressed the need for introducing mechanisms to check misappropriation of money in the cooperative sector by the operators.
Read More: Effective laws sought to control new technology-driven banking frauds –