PCQuest

Ye Lamhe is Giving us Sadma

Deploying a blockchain system could have prevented tampering of the SWIFT system in case of Punjab National Bank

- – Anushruti Singh anushrutis@cybermedia.co.in

All of us who have been enamored of her acting skills….a superstar who could also act… And all of us belonging to the male progeny who have fantasized about her sexy eyes and her doll like childish voice.

And yes all of us are sad by her untimely demise, especially the mode of it far away from her own land. Sridevi as a superstar will always deserve to be in our hearts and yes I admit that her death too would cause enough consternat­ion to be highlighte­d as prime time news across electronic, social, digital and print media.

However, what pains me inordinate­ly is the way both electronic as well as the social media have gone overboard in dissecting the reasons behind her untimely demise. True, it was my FB connects through which I woke up to this sad news on a Sunday morning. But the way events are panning out now across all modes of media looks to me nothing else than satiating the voyeurism of the Indian public.

First to blame are the TV anchors in the electronic media. Knowing fully well the potential to exploit the TRP value of this sensationa­l news (yes accidental death of a beauty is sensationa­l), they are going all out in further titillatin­g the lapping audience. Debates featuring doctors, psychologi­sts, political analysts, all and sundry are occupying all the prime time since the las few days.

Whether she died of a cardiac failure or she drowned in an alcoholic stupor, the fact of the matter is it’s a sad time for her family and they should be allowed to grieve in private. What all these threadbare analyses are doing is nothing short of discussing all sorts of innuendos and speculativ­e facts and fictions and putting it under the garb of expert views.

Social media is further adding fuel to this rumor mongering as well as vague speculatio­ns being bandied around. The amount of FB posts, WhatApp forwards, tweets I have seen on this whole affair is mindboggli­ng. (I will admit I myself am to blame for some of these). But this intrusive nature of social media barging into the life of cause celebres is indeed very disturbing and unwelcome. True celebritie­s crave for public adulation, but at least in death they should be gven their dignity. Especially not publishing or showing disturbing photos like her body floating on a bathtub.

True tech advancemen­ts have led to so much progress in social media usage and adoption as well as electronic media viewership, but I strongly feel that should not be at the expense of violation of someone’s privacy as well as dignity. I am sure the Chaalbaaz, Roop Ki Rani, Ms Hawa Hawaii would have agreed with me.

Yes all of us are mourning the demise of Khwabon Ki Shehzadi….the Bijli Ki Rani….

“Unfortunat­ely, the fraudsters have also started using innovative methods to misuse the banking system. At the same time tools and techniques such as real time neural network based behavior models and forensic accounting are already changing the face of fraud detection and prevention.” DR. PREETI GOYAL , Professor — Finance & Accounting, Great Lakes Institute of Management

Banking sector is the engine of economic growth and any malfunctio­n in this engine sends shivers down the entire economy. In the recent years, banks have achieved phenomenal growth which has predominan­tly been enabled by technology. But human interventi­on can lead to situation where one can not imagine. PNB fraud case is also a case of technology v/s human interventi­on. If seeing it from a technology aspect, the case could be considered as a hack in the system however it is indeed more of a bank break-in rather than considerin­g as a cyber crime.

In the wake of PNB SWIFT-related fraud involving significan­t amount, RBI also reiterated its confidenti­al instructio­ns and mandated the banks to implement, within the stipulated deadlines, the prescribed measures for strengthen­ing the SWIFT operating environmen­t in banks.

Dr. Preeti Goyal a professor of Finance & Accounting at Great Lakes Institute of Management in Gurgaon says, “In the coming years this sector is expected to witness explosive changes and growth with the use of newer technologi­es such as NFC, block chains, robotic process automation etc. Unfortunat­ely, the fraudsters have also started using innovative methods to misuse the banking system. At the same time tools and techniques such as real time neural network based behavior models and forensic accounting are already changing the face of fraud detection and prevention. This is like a cat and mouse game between the banks and fraudsters and technology remains both a root cause as well as the solution to this.”

While the Nirav Modi fraud has been highlighte­d as a technology fraud, the focus should actually be on the lack of internal controls, checks and balances that led to this situation. It is not that bank frauds did not happen prior to the use of technology. Many of us will recall how Harshad Mehta duped the banking system of crores of rupees in late 1980s – at that time it was said if banks were automated; it may have been possible to prevent the fraud.

“There is no nirvana to prevent bank fraud. The solution lies in strengthen­ing the internal controls, checks and balances and at the same time investing in latest technology and training people to use it.” She adds.

While this fraud has occurred at one of the branches of PNB, it would eventually affect other Banks in India and outside India due to nature of such contracts. If PNB backs out of its obligation­s to pay and takes legal route, other banks will also a take a hot.

“As we have seen in past, such frauds are not limited to one branch and we may see other Banks unearthing similar frauds in near future in one of their branches. Con-

sidering that Public sector Banks in India are Government backed, there is no immediate threat on existence of any of banks. However, such news weakens the faith of Indian Public and Internatio­nal investors in the Banking system. This is not a good news and will have long term repercussi­ons for Indian banking system as a whole. This is also a final wake up call for banks to put their house in order.” Says Rajeev Mahajan, Co-Founder, CEO and Director at Antworks Money, also the Ex-Senior President – MNC Infrastruc­ture, Yes Bank.

Blockchain Technology Can Help Avoid Scams

There has been some unrest among people regarding the safety of their money deposited in the banks due to the recent turn of events related to bank frauds.

“Financial services are the lifeline of any growing economy and such incidents could tarnish the image of the banking system with much wider implicatio­ns.”

The above statement made by Sandesh Hegde, Partnershi­ps and Alliances Head at XinFin, is very true and financial industry has always tried its best to keep the transactio­ns and currency exchange process as secure as possible because the risks involved are too big.

For example, letters of undertakin­g (LoU) is a devoted trade finance instrument which includes buyer credit services also. It is important because many times importers may refuse payment after shipment delivery or exporters might not make timely delivery after getting an early payment. Similarly, there are SWIFT (Society for Worldwide Interbank Financial Telecommun­ication) IDs and CBS (Core Banking System) to ensure that internatio­nal banking is secure and efficient. However, not all these techniques are scam-proof which is evident if we follow current events.

Also, if this would have been older times no one

“However, such news weakens the faith of Indian Public and Internatio­nal investors in the Banking system. This is not a good news and will have long term repercussi­ons for Indian banking system as a whole. This is also a final wake up call for banks to put their house in order.” RAJEEV MAHAJAN Co-Founder, CEO & Director Antworks Money

“Financial services are the lifeline of any growing economy and such incidents could tarnish the image of the banking system with much wider implicatio­ns.” SANDESH HEGDE Partnershi­ps and Alliances Head XinFin

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 ??  ?? Yes all of us are mourning the demise of Khwabon Ki Shehzadi…. the Bijli Ki Rani….
Yes all of us are mourning the demise of Khwabon Ki Shehzadi…. the Bijli Ki Rani….
 ??  ?? Rajneesh De, Group Editor rajneeshd@cybermedia.co.in
Rajneesh De, Group Editor rajneeshd@cybermedia.co.in
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