Reserve Bank of India deputy governor MK Jain on Monday stressed the need for greater coordination among countries to tackle cyber attacks, saying these can impact financial inclusion efforts across the globe.
Speaking at an international event under India’s G20 presidency on Monday, Jain called for the formulation of a common framework against such risks and suggested six strategies to improve the global cyber security environment.
Jain acknowledged that cyber attacks can disrupt financial operations within banks and can have a significant impact on financial inclusion efforts across the globe.
Financial inclusion aims at providing access to financial services to underserved and marginalised people, and rapid strides have been made in this area, he said. However, these people are more vulnerable to cyber risks due to their lack of awareness about cyber security, Jain said in his speech.
He also outlined six strategies to help improve the global cyber security environment.
To begin with, cyber security must be better incorporated into financial stability analysis, he said stressing that it would improve the ability to understand and mitigate the system-wide risk.
A minimum common framework for cyber security must be devised that outline best practices and standards for financial institutions to follow, he said.
Countries can share information and intelligence about cyber threats and attacks. This will help identify emerging threats and enable financial institutions take proactive measures to prevent attacks, Jain said adding that various countries must step up international efforts to prevent, disrupt and deter attackers, which would reduce the threat at its source.
They must also collaborate on capacity building and design training programmes to ensure that financial institutions have the necessary skills and resources to manage cyber risks effectively, he added.
He said the Reserve Bank of India (RBI) is continuously trying to strengthen its supervisory oversight by conducting activities like simulated phishing and cyber reconnaissance.
The RBI has also encouraged the development of innovative tools like the sectoral security operations centre, which can help address cyber risks, he said.
“Though cyber risks are said to outpace regulations, the Reserve Bank of India has been proactively taking measures to strengthen IT and cyber risk management in its regulated entities,” the deputy governor said.