Electronic banking (e-banking) in India is seen as a viable and alternative mechanism to do traditional banking business. Even banking customers are happy to use the same for reasons of efficiency and time saving. However, there are many e-banking security related issues that are not paid attention to by Indian banks.Cyber security of banking transactions in India is an important aspect that must be of paramount importance to all banks and financial institutions operating in India and elsewhere. Even Reserve Bank of India (RBI) has recommended ensuring strong cyber security for banking and financial institutions in India. RBI has even made the appointment of chief information officers (CIOs) mandatory for all banks operating in India. However, till now there is no sign of compliance with this requirement of RBI and online banking system of India is not cyber secure.
E-banking risks in India are increasing and cyber security of e-banking in India must be strengthened by various banks. In fact, e-banking cyber security in India needs to be strengthened so that customers’ confidence can improve. ATM frauds in India are increasing and so are e-banking related and credit cards frauds. RBI’s ombudsmen office is already flooded with ATM related complaints. Other banking financial frauds in India are also widespread.
Recently, Indian electronic delivery of services bill 2011 has been proposed by Indian government. The moment it becomes an applicable law, government departments and public authorities would be required to deliver public services in an electronic form. This makes using a strong cyber security essential for banks and financial institutions operating in India.
Similarly, the cyber law of India mandates cyber due diligence for Indian companies and other stakeholders. Banks of India are also required to ensure cyber law due diligence in India to escape financial, civil and criminal liabilities. Cyber security due diligence for banks in India must be taken very seriously by banks and financial institutions in India. Banks must ensure good chief information officers (CIOs) training for their staffs so that they can meet the cyber security requirements effectively.
For long banks have ignored cyber law due diligence and cyber security requirements and this has made e-banking transactions unsafe in India. E-banking in India is not safe and both Indian government and RBI must immediately step in to remedy this situation.
