Question : Fraud through ECS Transaction by Banks

(a) whether the Government has received complaints regarding fraud through Electronic Clearing Service (ECS) transactions by banks;

(b) if so, the number of complaints received by banks during each of the last one year and the current year, bank-wise particularly in Bank of Maharashtra, UPSC Branch, New Delhi along with the action taken by the management/bank on each of these complaints;

(c) whether the management and bank have not shown any interest in resolving said type of fraud even after written complaints from the peoples representatives;

(d) if so, the details thereof and penal action proposed against the bank officials with instruction to immediately correct their misdoings and refunds the amount to complaints with penal interest; and

(e) the steps taken by the banks so far to prevent fraud in ECS transactions in future?

The Minister of State in the Ministry of Finance


(a) to (e): Public Sector Banks (PSBs) have informed that they have not received any complaint regarding fraud through Electronic Clearing Service.

Bank of Maharashtra has further informed that its UPSC Branch, New Delhi, had received a complaint on 7.4.2017 for wrong debit in an account due to wrong mapping of account number by another bank, through ECS. Bank of Maharashtra has refunded the amount, along with interest, to the complainant, resolving the matter to the satisfaction of the complainant.

PSBs have informed that appropriate systems and procedures are in place to guard against occurrence of fraud.
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