Mumbai: The Reserve Bank of India ( RBI) will act against banks that do not implement its guidelines on electronic security of their transactions and operations by October.
A working group, under the chairmanship of RBI Executive Director G Gopalakrishna, has called for strengthening the information technology architecture of banks and security measures to tackle cyber fraud.
Banks need to implement RBI norms on electronic security of their transactions and operations by October 2012.
” We need to ensure robust technology related controls and processes at all commercial banks to facilitate customer confidence in our banking system”, RBI, Executive Director, G Gopalakrishnan said. Banks with a high technology penetration will have to implement all the norms and those not having any major online transactions have to implement only some of its proposals.
M Narendra, Chairman and MD of IOB, said ” Apart from losing their money by compensating the customers for their loss owing to inadequate security, banks would also face much bigger risk of losing their reputation.”