Delivering the inaugural address at the national seminar on computer related crime, RBI deputy governor SP Talwar said that formal controls governing physical access to computer areas in addition to physical access to computer operation on the basis of the use of passwords, valid user identification will have to be laid down.

According to Talwar, technical controls for a number of operations including standardised and secure message formats, correct authentification, personal identification number, digital signatures encryption and decryption of data and backup that would be tamper-free will have to be framed.

"The next imperative is to conduct computer security audit. This is an activity that is gaining in importance of late and is perhaps one of the best tools available for combating computer crime. Audit ofcomputer security-- especially by professional organisations is vital requisite to ensure that complacency within the organisation does not result," Talwar said.

He said managements of public sector banks will have to monitor the work and operations of the group of technologically expert persons to ensure that crimes are not perpetuated from inside. "This is a challenge since over 2 lakh personnel had also received training in the handling and concepts of computer systems in PSBs," Talwar said.

The RBI deputy governor added that to is also necessary to impart sufficient skills to bank examiners to be able to examine records effectively in computerised operating environment and also be able to put together a picture of the operations.

Talwar said that the imperative to enhance the level of computerisation in the banking industry has been strengthened by the government's IT vision. "In future there would be increasing focus on dematerialisation of shares and securities which would result in twoadvantages: first, the prevention of frauds and second the facilitation of government securities in an "On-line real time gross settlement basis".