With rising interconnections internationally, curbing cyber risk requires an international effort, stated Reserve Bank of India (RBI) deputy governor MK Jain at an international occasion below India’s G20 Presidency held on Monday in Mumbai.
“It is expected that the G20 forum would complement the efforts of various international bodies towards building an approach for helping financial sector through capacity development initiatives aimed at designing and implementing international standards and best practices as a priority,” he stated in his keynote deal with on the occasion referred to as “Cyber Security Exercise for Banking Sector.”
He stated India is likely one of the few nations that protects customers via the mandate of two-factor authentication for digital fee transactions.
“Although it is now recognised as an innovative regulation, at the time when RBI introduced it about a decade back, there was a push-back and criticism. Similarly, the recent measures such as better customer control on card usage, shorter Turn-Around-Times for transaction failures, tokenisation, etc. are all initiatives intended to protect the customer,” he stated.
He stated the supportive regulatory setting, with its give attention to security, pace and scalability has positioned India as a pacesetter in fee system innovation.
Since cyber threats transcend geographical boundaries, he stated, nations and monetary establishments should work collectively to deal with them.
Calling for a collective motion he stated, “The global financial system’s interdependencies need to be better understood by mapping key operational and technological interconnections, including that of critical infrastructure.”
“Better incorporation of cyber risk into financial stability analysis will improve the ability to understand and mitigate system-wide risk,” he stated.
He stated a minimal widespread framework for cybersecurity must be devised that outlines greatest practices and requirements for monetary establishments to observe. This will help be sure that all establishments are taking the required steps to guard themselves from cyber threats.
Mr. Jain stated to the extent possible as per home legal guidelines, nations can share info and intelligence about cyber threats and assaults. This will help to determine rising threats and vulnerabilities and allow monetary establishments to take proactive measures to forestall assaults.
He stated nations can work collectively to develop and implement incident response plans. This will help to make sure that within the occasion of a cyber-attack, there is a coordinated and efficient response that minimizes the affect on the monetary sector.
Emphasising that cyber-attacks ought to turn into dearer and riskier for the perpetrators, he stated efficient measures needs to be put in place to confiscate proceeds of crime and prosecute criminals.
Mr. Jain stated nations can collaborate on capability constructing and coaching packages to make sure that monetary establishments have the required abilities and assets to handle cyber dangers successfully.
He stated in an interconnected world, the place monetary transactions traverse continents in a matter of seconds, the necessity for international cooperation in combating cyber threats has turn into paramount.
“Cyber-attacks targeting banks not only jeopardize the stability of individual institutions but also have the potential to disrupt financial systems, making it imperative for nations to come together and address this pressing challenge. Therefore, this event under India’s G 20 Presidency is important to complement efforts of various international bodies for addressing the issues of cyber security in the banking sector,” he stated.
