reserve Bank of India ,reserve Bank of IndiaBanks have been cautioned against increasing cases of Danger! in government accounts direct benefit transfer ,DBT) and asked them to increase their vigilance and conduct more stringent checks. issue was raised by banking regulator Recently in a meeting with bankers.

A senior executive aware of the matter said that the regulator wants lenders to be more proactive and keep a tab on unusual withdrawals or transactions.

An email sent to RBI did not elicit any response.

“It was also pointed out that there have been large scale withdrawals from some of these accounts, which indicates that the accounts were operated by a single individual or entity,” said an official on condition of anonymity. ‘ Another banker said there are reports that some beneficiaries under various government schemes take instant loans from local moneylenders and in return submit their account details including passbooks and ATM cards as guarantees.

“Those moneylenders withdraw money when the accounts of the beneficiaries are debited,” said the bank on condition of anonymity. “We have been advised to keep a watch if anyone tries to withdraw money using passbooks of such customers. However, it will be difficult to curb ATM withdrawals.”

The banker said the lender will also focus on educating customers and try to bring them under the ambit of formal banking, including loan products.

A government official said that there are adequate checks and balances to eliminate any fraudulent activities through DBT accounts. “Some isolated local issues could have been brought to the notice of the RBI, which they are actively working with banks on,” he said, adding that more than 1.75 billion authentication transactions were done in October. Base And 1,100 welfare schemes in the country, run by both the Center and states, have been notified to use Aadhaar.