A recent cybersecurity lapse has drawn regulatory attention after unauthorised transactions were reported on a multi-currency forex card issued by a private sector bank in partnership with a travel money company. The RBI has summoned the bank’s top executives to explain the sequence of events and identify the control failures that led to the compromise of customer data.
The issue surfaced on 24 Feb 2026, when unusual activity was detected on prepaid forex cards. An internal probe found that unauthorised transactions amounting to about Rs 2.5 crore were processed across nearly 5,000 customer accounts before fraud monitoring systems intervened. The bank said it successfully blocked another 688 suspicious transactions, preventing additional losses of around Rs 90 lakh.
Regulatory authorities have asked the bank to submit a detailed account of the breach, from initial detection to corrective action. They are seeking clarity on how card numbers and CVV details may have been exposed, why existing safeguards failed to stop the transactions, and what steps have been implemented to protect customers. Officials are also examining whether oversight of third-party partners was adequate and whether accountability has been clearly fixed.
According to sources, the fraudulent transactions were linked to merchants based in a Latin American country. The bank has started working with card networks to process chargebacks and reduce customer impact. It has maintained that the travel money partner’s systems were not breached and that sensitive card data is not stored on that platform.
The development highlights increasing regulatory focus on cybersecurity and data protection in the banking sector. The central bank is seeking assurance that stronger preventive measures are in place to avoid similar incidents in the future and to maintain customer confidence in digital payment systems.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.
