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Cyber Security Panel for Banks

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The RBI has constituted an inter-department Standing Committee on Cyber Security to continuously review security and analyse emerging threats to protect the Indian banking system from cyber attacks, the RBI stated in its sixth bi-monthly policy statement for 2016-17 announced on Wednesday .

“With the need to be continuously vigilant in the area of cyber security , it has now been decided to constitute a standing committee on cyber security. It will be cross functional and have industry experts as well as the government representative (as members),“ said SS Mundra, deputy governor, RBI. The committee's main functions would be to review threats inherent in upcoming and existing innovations in the financial technology space, adoption of security protocols, checking interface with various stakeholders and suggest possible policy interventions to strengthen cyber security .

The standing committee was constituted following the recommendations of the Expert Panel on Information Technology and Cyber Security headed by RBI executive director, Meena Hemchandra. “In India, majority of the organisations, including banks, mostly have a reactionary approach towards cyber security .Such proactive measures from the central bank would force other banks to become vigilant which will ultimately be beneficial for the Indian consumer,“ said Reshmi Khurana, MD of risk consultancy firm Kroll, which published a report stating that one among every five chief executives are worried about investing in India because of issues around frauds and cyber attacks. The major criticism against the Indian banking system is that banks prefer to hush up cyber attacks on their systems. 

09TH FEBRUARY, 2017, THE ECONOMIC TIMES, NEW-DELHI

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