Reserve Bank of India (RBI) has recently
constituted a working group on information security,
electronic banking, technology risk management and cyber frauds. RBI
has also directed that all banks would have to create a position of
chief
information officers (CIOs) as well as steering
committees on information security at the board level at
the earliest. This direction was provided through the information
technology vision document for 2011-17 (IT Vision 2011-17)
and the recent notification of the draft report.
RBI has also acknowledged the risks of e-banking in India and has advocated for establishing of effective cyber security for banking and financial sectors of India. Similarly, there are no effective Internet banking laws in India or online banking laws in India. In the absence of stringent laws in this regard, online banking risks in India are increasing.
Of late, cases of phishing
and banking frauds have increased tremendously in India.
Further, cyber
due diligence of banks in India is still a far dream. Even
the directions of RBI to appoint CIOs and steering committees on
information security have
not yet been implemented.
Cyber security for banking and financial institutions of India is not in proper shape. Even due diligence requirements under the cyber law of India are not properly met. This has forced RBI to upgrade ATM security in India. Further, RBI has also imposed penalty upon 19 banks for non compliance with the regulatory requirements.
Indian banks are poor at cyber security policy formulation and its implementation. Cyber Security Policy is an issue that is very important for Banks of India, says Praveen Dalal, managing partner of New Delhi base ICT law firm Perry4Law and leading cyber law expert of India. With the growing use of Internet Banking, ATM machines, Credit and Debit Cards, Online Banking, etc, Banks of India must also upgrade their Cyber Security Infrastructure and establish a Cyber Security Policy, suggests Dalal.
Cyber security for banking and financial institutions of India is not in proper shape. Even due diligence requirements under the cyber law of India are not properly met. This has forced RBI to upgrade ATM security in India. Further, RBI has also imposed penalty upon 19 banks for non compliance with the regulatory requirements.
Indian banks are poor at cyber security policy formulation and its implementation. Cyber Security Policy is an issue that is very important for Banks of India, says Praveen Dalal, managing partner of New Delhi base ICT law firm Perry4Law and leading cyber law expert of India. With the growing use of Internet Banking, ATM machines, Credit and Debit Cards, Online Banking, etc, Banks of India must also upgrade their Cyber Security Infrastructure and establish a Cyber Security Policy, suggests Dalal.
See Cjnews India for more.
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