Banking industry of India has started using information and communication technology (ICT) for various banking related affairs. However, with the growing use of ICT, cyber crimes and banking frauds have also increased. Although Reserve Bank of India (RBI) has taken many pro active steps to introduce cyber security element in the Indian banking sector yet banks of India are not using the same at all.For instance, RBI has recently directed that all banks would have to create a position of chief information officers (CIOs) as well as steering committees on information security at the board level at the earliest. This direction was provided through the information technology vision document for 2011-17 (IT Vision 2011-17). This document has suggested many technological as well as legal reforms for banking sector of India.
However, banks of India have shown no willingness to incorporate cyber security into their day to day functions. Till now the directions of RBI to appoint CIOs and steering committee has not been followed by banks of India.
Cyber Security Policy is an issue that is very important for Banks of India, says Praveen Dalal, managing partner of New Delhi base ICT law firm Perry4Law and leading cyber law expert of India. With the growing use of Internet Banking, ATM machines, Credit and Debit Cards, Online Banking, etc, Banks of India must also upgrade their Cyber Security Infrastructure and establish a Cyber Security Policy, suggests Dalal.
RBI has to make it sure that its directions regarding cyber security policy and practices are accepted and implemented by banks operating in India. Till now Indian banks have shown a poor track record of cyber security usage.
