In response to the challenges posed by technology, the Reserve Bank of India (RBI) has enacted initiatives to address cybercrime as well as the disruptions caused by the emerging fintech sector, including blockchain technology.
The RBI has established the Reserve Bank Information Technology (ReBIT) has been established to address these issues. R. Gandhi, deputy governor of the bank, summarized the critical role of the ReBIT activities during the 12th Institute for Development and Research in Banking Technology (IDRBT) excellence awards function in Hyderbad. Gandhi’s remarks were provided in a report by the Basel, Switzerland-based Bank for International Settlements.
In addition to ReBIT, the RBI has also formed a working group on financial technology to better understand the new fintech paradigm and chart the best way to use it. Cyber Security A Rising Threat
Cyber security marks one of the most serious challenges for the financial sector, Gandhi said. While banks have made use of technology to prevent crime, criminals have also increasingly made use of it. Banks’ IT systems are the prime target for cyber criminals, and the problem is growing.
Gandhi cited recent incidents at Bangladesh Bank and other institutions. “If we need to provide safe and secure banking, then providing for safe IT systems is an undeniable requirement,” he said. “It is essential that in every IT-based initiative, security is addressed as a vital component.”
He noted that cyber attacks have become highly sophisticated and are making use of specialized techniques to exploit minute variables that often go unnoticed. The IDRBT has a Chief Information Security Officer (CISO) forum for banks to exchange information and be able to respond to cyber incidents. Blockchain Advances
Cloud-based computing and blockchain processing technologies are developing rapidly, he noted. Virtualized IT systems could provide safe, trackable and secure digital currency, homogenous IT systems and […]
