Reserve Bank of India compel Cyber Security Among Banks 

Mumbai , Oct 05: Consumer comes to the fore in Reserve Bank Governor Urjit Patel’s regime with increased focus on KYC complaints, cyber crimes and fraudulent transactions where the regulator said will bring in stronger supervision of banks and also expand its cyber security coverage to the entire banking sector.

“Concerns around cyber security are increasing fast. So, last year, on a pilot basis, we started to instruct a few banks separately on cyber security. This year, the coverage is being expanded to more than 30 banks and going forward we intend to cover each bank from separate points of IT risks and Cyber security Risks” Says SS Mundra, deputy governor RBI.

With two major public sector lenders having narrowly missed cyberattacks this year and reports around a private sector lender’s systems being compromised recently, the Reserve Bank of India has taken proactive measures to ask banks to strengthen their background systems and also force them to report cases of frauds to the regulator as well as the police on a regular basis.

“The RBI has circulated a set of guidelines to all banks on the best practices undertaken globally and banks were required to test their systems, identify gaps and prepare a roadmap on how to meet the best practices,” said a banker who did not wish to be identified.

With banks adopting more and more technology advancements from core banking solutions, net banking, kiosk banking and mobile banking, the regulator is finding out more about new avenues of cyberattacks on banks and is trying to make them aware of the threats. Mundra said RBI has also set up a special cell to track largesize fraud and coordinate with other relevant agencies to solve these cases faster.

To ensure that consumer complaints are addressed properly by banks, the RBI is also planning to expand the coverage of the Banking Ombudsman Scheme.

The scheme which was meant to address customer grievances has faced two major issues regarding accessibility of their offices and the penal action that they are allowed to take. Bankers spoke to media said the complaint against the ombudsman was that few states never had one.