RBI asks banks, NBFCs to deploy adequate resources to step up cybersecurity

Banks and financial institutions, including NBFCs and cooperative banks, in the country should continuously evaluate the cybersecurity threats and vulnerabilities they are exposed to and be resilient enough to combat any threat situation, said Rohit Jain, Executive Director, Reserve Bank of India, here on Monday.

The RBI official was delivering a keynote address on ‘Cybersecurity: The Present Day Need’ here as a precursor to the G20 Finance Ministers and Central Bank Governors (FMCBG) and Finance and Central Bank Deputies (FCBD) meeting, scheduled in the city between February 22 and 25.

He urged all financial institutions to be prepared for any potential impact on cybersecurity, especially when the Internet of Things (IoT) and cloud computing and other technologies were fast emerging.

“Banks should continuously evaluate the threat profile of their critical information assets, test for vulnerabilities, and ensure resilience to cyber security risks in the present tech scenario,’‘ he encouraged the bankers’ community.

He said that security should be embedded in the banking processes and systems. He also emphasised the need for banks to have adequate resources to ensure cybersecurity.

“As the emerging environment is likely to expose financial institutions to various security risks, they should deploy adequate resources in terms of cybersecurity experts, security tools, and techniques and investments in IT,’‘ Mr. Jain added.

He also appealed to the audience, comprising senior officials of various banks and NBDCs, to take ownership of the emerging risk areas and periodically review the level and direction of cybersecurity risks.

Commenting on the RBI’s strides in combating crimes towards attaining cyber resilience, he said the Central bank tried to conduct a simulated phishing situation, by sending phishing emails to banks to check their threat preparedness.

“Based on the responses received, we advise the concerned entities and encourage them to strengthen their firewalls and create better awareness in handling phishing attacks,’‘ he added.