Bank ATM Transaction: The Reserve Bank of India (RBI) today announced a new measure to ensure safety of ATM transactions.
Bank ATM Transaction: The Reserve Bank of India (RBI) today announced a new measure to ensure safety of ATM transactions. In its bi-monthly “Statement on Developmental and Regulatory Policies”, the central bank noted that several banks and other regulated entities depend on third-party application service providers for shared services for ATM Switch applications. These service providers are exposed to associated cyber threats as they also have exposure to the payment system. Hence, the RBI has decided to introduce mandatory baseline cyber controls that banks and regulated entities can include in their contract agreements with the third-party service providers.
“A number of commercial banks, urban cooperative banks and other regulated entities are dependent upon third-party application service providers for shared services for ATM Switch applications,” RBI said.
“Since these service providers also have exposure to the payment system landscape and are, therefore, exposed to the associated cyber threats, it has been decided that certain baseline cyber security controls shall be mandated by the regulated entities in their contractual agreements with these service providers,” it added.
What the new guidelines will include
The central bank said the mandatory guidelines would require the service provides to implement several measures to strengthen the process of deployment and changes in application softwares in the ecosystem, continuous surveillance and implementation of controls.
“The guidelines would require implementation of several measures to strengthen the process of deployment and changes in application softwares in the ecosystem; continuous surveillance; implementation of controls on storage, processing and transmission of sensitive data; building capacity for forensic examination; and making the incident response mechanism more robust,” RBI said.
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The central bank will issue detailed guidelines in this regard by December 31, 2019.