Social media is a boon as a listening tool. The corporate world has realized it and now is the turn for the Reserve Bank of India. With the ongoing increase in online frauds, Reserve Bank Governor Raghuram Rajan recently mooted the idea of using the social media by the regulator as a tool to pick up wrongdoings.

Speaking at the Nasscom Leadership conference which commenced yesterday in Mumbai, the RBI Governor raised the question that, “Can we enlist social media in enabling the public to identify fraud and can we as regulators filter that information in careful and responsible way so that we can collect information about what is happening and react to it?”

Clarifying further, the Governor informed that while these are early days, over the time social media can be used as a listening post to pick up the latest frauds. He also added that he brought this idea forward in the conference since the Indian IT sector has been investing aggressively in SMAC (social media, mobile, analytics and cloud) which could come up with some worthy solution to the problem.

During his talk, Rajan also emphasised that the social media space has two sides to it – it can be used by a potential fraudster to trap hapless victims, while it can also be used as an asset for police to fight wrongdoings. He also felt that the country has a very robust social media with quite a lot of activities happening on Facebook and Twitter, two of the most popular social networking sites.

A noteworthy thought from the man who has been known for his unconventional methods to tackle issues at hand after occupying the Governor’s chair. The country has seen a lot of movement in the SMAC technology space and going further there could be good chances wherein RBI ties up with a worthy SMAC provider.

Will this also lead to establishment of RBI’s presence on social media?