RBI releases Cyber Security Vision Framework for Urban Cooperative Banks

On September 25, 2020, the Reserve Bank of India released Cyber Security Vision Framework for Urban Cooperative Banks (UCBs). The apex bank has taken four different guiding principles in order to formulate the framework. This is because the heterogeneity of UCBs in India in terms of regions, size, digital depth and financial health is huge. A “one size fits all” approach would not be appropriate while prescribing cyber security in the country.

The framework has been released under the title Technology Vision for Cyber Security’ for Urban Co-operative Banks (UCBs) – 2020-2023

Highlights

The framework aims to achieve its objective through a five pillared strategic approach which is as follows

• Governance Oversight: Under this framework, a RBI board will over view cyber security measures being implemented and will create IT Vision Documents based on the progress and gaps
• Utile Technology Investment: Under this plan, funds are to be created for cyber security projects. To manage business IT Assets and banking service availability.
• Appropriate Regulation and supervision: Under this a supervisory reporting framework will be created. Also appropriate guidance will be provided in implementing secure practices.
• Robust Collaboration: A forum to discuss practical issues and challenges and to share best practices is to be created. Cloud services are to be adopted to implement the framework successfully.
• Developing IT and Cybersecurity Skills Set: The technical skills are to be provided to the UCBs. This will help them manage their own IT and cyber security infrastructure. Also training and awareness are to be provided to all the UCBs on cyber security.

Background

Today all the UCBs are at some stage of technology adoption. This can be ATMs or mobile banking or internet banking. With technology becoming the key driver of banking sector, it is essential for the UCBs to adopt cyber security measures to safeguard their transactions and also boost their technical skills.

Month: Current Affairs - September, 2020