News Details- (Get Professional Updates on Whatsapp, Msg on
8285393786) More
News
RBI alerts banks on heightened cyber security threats
PrintThe Reserve Bank of India (RBI) has cautioned some banks, urging them to fortify their defences against potential cyber attacks, as per a Moneycontrol report citing industry sources.
The warnings, issued to select banks, follow the central bank's recent Cyber Security and Information Technology Examination (CSITE), wherein action points were provided to address identified vulnerabilities, the report added.
Distinct from routine risk assessments, the CSITE, scrutinises banks' disaster management readiness, internet and mobile banking platforms, and fraud detection mechanisms. It serves as an independent review, initiated several years ago, to bolster cyber security surveillance.
“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," one source told the publication.
The RBI did not respond to repeated requests for inspection findings and ongoing evaluations, the report added.
RBI Deputy Governor T Rabi Sankar had in February stressed the need for the banking sector to brace itself for evolving cyber threats. Speaking at the 19th Banking Technology Conference in Mumbai on February 9, Sankar said banks must revamp their encrypted systems to counter artificial intelligence (AI) abuses.
Moreover, in response to the UCO Bank incident last year, wherein erroneous credits totalled ?820 crore, the Finance Ministry directed state-run banks to review their digital operations' robustness.
On November 15, 2023, UCO Bank said that it faced some technical issues due to which some accounts received erroneous credits totalling ?820 crore via Immediate Payment Service (IMPS).
“It is clarified that the transactions observed by the bank were due to internal technical issues as a result of which account holders of our bank have received some erroneous via IMPS. We wish to clarify that there was no issue with the IMPS platform," it had said.
A day later on November 16, UCO Bank said it had recovered ?649 crore or 79 percent of the ?820 crore, by taking various proactive steps, such as blocking the recipients' accounts.
Citing a surge in cyber security breaches, government data disclosed 248 successful data breaches in India's banking sector between June 2018 and March 2022, the report noted. These breaches primarily involved card details leakage and information theft, prompting heightened vigilance.
Of these breaches, public sector banks reported 41 cases, private peers reported 205, and foreign banks reported two incidents. In light of these threats, the RBI mandated banks to bolster their IT risk governance frameworks, emphasising the active involvement of chief information security officers and board committees.
To mitigate cyber security risks, the RBI has instituted a dedicated Cyber Security Framework for Scheduled Commercial Banks (SCBs), which mandates the implementation of robust cybersecurity measures and IT controls to prevent data breaches.
The warnings, issued to select banks, follow the central bank's recent Cyber Security and Information Technology Examination (CSITE), wherein action points were provided to address identified vulnerabilities, the report added.
Distinct from routine risk assessments, the CSITE, scrutinises banks' disaster management readiness, internet and mobile banking platforms, and fraud detection mechanisms. It serves as an independent review, initiated several years ago, to bolster cyber security surveillance.
“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," one source told the publication.
The RBI did not respond to repeated requests for inspection findings and ongoing evaluations, the report added.
RBI Deputy Governor T Rabi Sankar had in February stressed the need for the banking sector to brace itself for evolving cyber threats. Speaking at the 19th Banking Technology Conference in Mumbai on February 9, Sankar said banks must revamp their encrypted systems to counter artificial intelligence (AI) abuses.
Moreover, in response to the UCO Bank incident last year, wherein erroneous credits totalled ?820 crore, the Finance Ministry directed state-run banks to review their digital operations' robustness.
On November 15, 2023, UCO Bank said that it faced some technical issues due to which some accounts received erroneous credits totalling ?820 crore via Immediate Payment Service (IMPS).
“It is clarified that the transactions observed by the bank were due to internal technical issues as a result of which account holders of our bank have received some erroneous via IMPS. We wish to clarify that there was no issue with the IMPS platform," it had said.
A day later on November 16, UCO Bank said it had recovered ?649 crore or 79 percent of the ?820 crore, by taking various proactive steps, such as blocking the recipients' accounts.
Citing a surge in cyber security breaches, government data disclosed 248 successful data breaches in India's banking sector between June 2018 and March 2022, the report noted. These breaches primarily involved card details leakage and information theft, prompting heightened vigilance.
Of these breaches, public sector banks reported 41 cases, private peers reported 205, and foreign banks reported two incidents. In light of these threats, the RBI mandated banks to bolster their IT risk governance frameworks, emphasising the active involvement of chief information security officers and board committees.
To mitigate cyber security risks, the RBI has instituted a dedicated Cyber Security Framework for Scheduled Commercial Banks (SCBs), which mandates the implementation of robust cybersecurity measures and IT controls to prevent data breaches.
Category : RBI | Comments : 0 | Hits : 1042
Get Free Daily Updates Via e-Mail on Income Tax, Service tax, Excise and Corporate law
Search News
News By Categories More Categories
- Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
- Bank Branch Audit 2021 - Update on allotment of Branches
- Bank Branch Audit 2020 Updates
- Bank Branch Audit 2021 Updates
- Bank Branch Audit 2020 - Update on Allotment of Branches
- Police Atrocities towards CA in Faridabad - Its Time to be Unite
- Bank Branch Statutory Audit Updates 2019
- Bank Branch Statutory Audit Updates
- Bank Branch Audit 2022 Updates
- Bank Branch Statutory Audit Updates
- NFRA Imposes Monetary penalty of Rs 1 Crore on M/s Dhiraj & Dheeraj
- ICAI notifies earlier announced CA exam dates despite pending legal challenge before SC
- NFRA debars Auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
- GST Important Update - Enhancement in the GST Portal
- NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
- CBDT extends due date for filing Form 10A/10AB upto 30th June, 2024
- RBI comes out with FEMA regulations for direct listing on international exchange
- RBI directs payment firms to track high-value, fishy transactions during elections
- NCLT orders insolvency proceedings against Subhash Chandra
- Income Tax dept starts drive to dispose of appeals, 0.54 million at last count
- Payment of MCA fees –electronic mode-regarding
- Budget '11-12' Parliament Completes Approval Exercise
- Satyam restrained from operating its accounts
- ICICI a foreign firm, subject to FDI norms: Govt
- Maha expects Rs 15 crore entertainment tax revenue from IPL
- CAG blames PMO for not acting against Kalmadi
- No service tax on visa facilitators: CBEC
- Provision of 15-minutes reading and planning time allowance to the candidates of Chartered Accountants Examinations
- Companies Bill to be taken up in Monsoon Session
- File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000
Comments