1. Cyber security supervision: RBI to soon cover all banks

Cyber security supervision: RBI to soon cover all banks

With instances of cyber attack rising, the Reserve Bank today said it has decided to increase its supervisory coverage on IT risks for banks with an aim to eventually cover all the lenders.

By: | Mumbai | Published: October 4, 2016 6:02 PM
Deputy governor SS Mundra said the RBI had started a special supervision of banks' cyber security last year on a pilot basis in which it had covered a few largest banks. (Reuters) Deputy governor SS Mundra said the RBI had started a special supervision of banks’ cyber security last year on a pilot basis in which it had covered a few largest banks. (Reuters)

With instances of cyber attack rising, the Reserve Bank today said it has decided to increase its supervisory coverage on IT risks for banks with an aim to eventually cover all the lenders.

“This year, the supervision coverage is being extended to over 30 banks and going forward we intend to cover every bank from an intent of information technology risk and cyber security risk,” deputy governor SS Mundra told reporters after the fourth bi-monthly policy review.

He said the RBI had started a special supervision of banks’ cyber security last year on a pilot basis in which it had covered a few largest banks.

The RBI is also in the process of setting up a dedicated IT subsidiary which may help with such issues.

It can be noted that there has been a spurt in cyber security attacks in the recent past, including at Union Bank of India and also a large-sized lender in the recent past.

In both instances, the frauds were averted midway.

To tackle the menace of all financial frauds, Mundra said a dedicated monitoring cell has been set up in the RBI’s Department of Banking Supervision which will look into such issues, with a focus on large scale frauds.

It will coordinate with other agencies to take the matter to a logical conclusion at the earliest, he added.

From a supervisory perspective, there will be additional focus on mis-selling and know your customer/anti-money laundering fronts as well, Mundra said.

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