The Reserve Bank of India (RBI) has reportedly asked some banks to brace for heightened threats of cyber attacks.
According to a report in Money Control, quoting industry sources, these banks have been asked to beef up their security to mitigate such risks.
The RBI alert is said to follow the latest round of Cyber Security and Information Technology Examination (CSITE) by the central bank. The RBI is also said to have provided action points wherever deficiencies were spotted.
What is CSITE
The CSITE helps the RBI assess various capabilities of banks, including disaster management readiness, internet and mobile banking platform capabilities, and fraud detection efficiency.
The inspection team looks into the IT systems of all lenders, identifies loopholes and issues action points.
“The RBI conducts a separate inspection to identify deficiencies in the cyber security capabilities of banks. This time, they met us and have given a list of action points where deficiencies need to be addressed,” said one of the bankers quoted above.
AI increases risks for banks: RBI governor
Last week, speaking at an event, RBI governor Shaktikanta Das said that with the advent of AI, cybersecurity challenges can rise manifold, and called upon financial institutions to dedicate substantial efforts to protect customer information.
Regulated entities serve as repositories of data on financial transactions, customer interactions, and operational activities, the governor said.
Das noted that with the rise in fraudulent transactions, it is critical for financial institutions to strengthen monitoring systems and use technology to detect potential frauds before they materialise.
“Maintaining a focus on root cause analysis of consumer grievances can result in preventing such complaints from coming up repeatedly,” he said.
“Financial institutions must dedicate substantial efforts to protect customer information and ensure that vulnerabilities exposing customers to risk are promptly identified and addressed,” the governor said.
He further added that the litmus test of the working of any institution or entity is the efficacy of its grievance redressal mechanism.
