New Delhi, Aug. 13 -- A Parliamentary Standing Committee on Finance has rejected the government's response on tackling cyber-enabled financial fraud, saying the measures outlined by the Department of Financial Services remain largely procedural and fail to address critical operational gaps, particularly in preventing fraudulent funds from being siphoned through mule accounts.

In its 44th Report on action taken by the government on its earlier recommendations concerning the Department of Financial Services, the committee said cyber-enabled financial crimes have become increasingly sophisticated, including digital arrest scams, phishing and investment frauds.

The committee had earlier called for stronger accountability of banks, real-time...