The Reserve Bank of India today released a 'technology vision' for the cyber security of urban co-operative banks (UCBs). This document aims to enhance the cyber security in urban co-operative banks in the wake of growing IT and cyber threats.
The technology vision has been framed based on inputs from various stakeholders, the RBI said. It said the document will achieve its objective through a five-pillared strategic approach - GUARD. The GUARD comprises governance oversight, utile technology investment, appropriate regulation and supervision, robust collaboration and developing necessary IT, cyber security skills set.
The RBI said the tech vision document will involve boarder oversight over cyber security and enable UCBs to manage and secure IT assets better. This document also implements an offsite supervisory mechanism framework for such banks on cyber security related controls. The document also develops a forum so the UCBs can share best practices and discuss practical issues and challenges.
The RBI said the cyber security landscape in India will continue to evolve with wider adoption of digital banking channels, which makes it important for UCBs to manage the risks associated with these initiatives effectively.
" Active collaboration within UCBs and their stakeholders would be necessary for sharing and coordinating various measures taken on cyber security aspects," the RBI said, adding the technology vision document will strengthen the cyber resilience of the UCBs.
Meanwhile, Parliament has passed the Banking Regulation (Amendment) Bill, 2020, which proposes to bring cooperative banks under the ambit of the Reserve Bank of India (RBI). The new law will improve governance at such banks and protect depositors' money. During COVID-19 pandemic, many cooperative banks came under stress and their finances are being closely monitored by the regulator RBI.