While Online transactions are rapidly increasing in India, therefore to control or revoke the digital outages and frauds RBI launched special guidelines to tackle these issues.
According to the experts, in the period of Covid-19, the amount of UPI transaction becomes double of Rs 4.3 lakh crore as compared to last year it will be Rs 2.1 lakh crore. However, these increasing transactions also increased several problems that caused $6 trillion by the end of this current year, the Cyberattacks are rapidly increasing day by day with the intensity that in every 11 seconds one attack is executed.
Therefore, to control or revoke these attacks RBI issues a certain set of guidelines for all the RBI-regulated organizations have the time of 6 months while adopting these new guidelines. These new guidelines include all the financial institutions, commercial banks, small finance banks, or those that are issuing credit cards, NBFC and other banks had to set up this updated governance structure and apply the minimum standards of security for the digital payments of products and services.
What these Guidelines Consist?
Interoperability and Compatibility are the important parameters that were used while determined the risk assessment. While all the associated regulated entities had to train their resources while managing the Cyber risk.
In these guidelines, all the regulated entities have to check their source code and perform vulnerability testing, penetration testing in the period of every 6 months. The third-party operators will have to do the periodic testing and submit the report to the concerned authorities.
These new guidelines also include that the Regulated Entities can setup the near-real-time conciliation that also includes the robust services and redressal system that can able to process the request faster. Apart from that these guidelines are more focused on multi-factor authentication and while making the internet-banking more secured and reduce the tendency of phishing attacks that using the SMS, e-mails, and tele calling methods while trapping the users.
The guidelines also cover the various measures that deal with the management of security risk, authentication framework, application security life cycle, fraud risk management, reconciliation, customer protection, awareness, grievance redressal mechanism, other applications deals with internet banking, card payments security, and mobile application security.
These updated new RBI guidelines will come into effect after six months from the day it will be passed. The RBI shared a detailed report of these guidelines on their official website. These guidelines will consist of best practices around the sources and the code protection of third-party applications and other cybersecurity guidelines.
Summering Up
The RBI governor Shaktikanta Das states that the central bank will be going to issue the new guidelines in December 2020. The RBI also banned the HDFC Bank while selling the new credit card or executing the new digital banking policies, whereas, the YONO SBI also suffered from the service outages which is the concern of other banks too.
In case the user’s debit card and account information is leaked that the associated entities have to secure such data. This is all done by revoking the service outages. RBI also stopped the other banks by issuing new policies related to digital products and updated payment services.
However, testing and certification are also introduced in these guidelines and the registered organization had to carry the security testing and audits while enhancing the security. The experts also said that if the government hasn’t taken any legal actions related to the cyberattacks and they will have to review the nation’s cybersecurity strategy which is pending for the last seven years. The government will have to take serious steps while closing the cyberattacks on digital services.
