Mobile Banking Cyber Security In India

Mobile Banking is the buzz word these days. While the idea of mobile banking is promising yet it requires certain prerequisites to be successful in India. The chief among these requirements is the requirement to have a robust cyber security for mobile banking in India.

Cyber security in India in general and cyber security for online banking transactions in particular is not in good shape. The Cyber security trends in India 2011 also reflected this position. Mobile banking in India is still not popular due to various factors. For instance, e-banking in India is not safe, Internet banking cyber security in India is missing and online banking in India is not safe. In these circumstances, mobile banking in India is risky due to absence of mobile cyber security in India.

Even the Reserve Bank of India (RBI) is aware of this situation. RBI constituted a working group on information security to ensure cyber security among Indian banks. As per RBI’s recommendations, all banks should create a position of chief information officers (CIOs) as well as steering committees on information security at the board level at the earliest.

However, banks of India have shown no willingness to incorporate cyber security into their day to day functions. Till now the directions of RBI to appoint CIOs and steering committee has not been followed by banks of India. The recommendations of the RBI have still not been implemented.

Naturally, Indian banks are poor at developing cyber security policies and implementing the same. Banks of India are also not providing positive confirmation to the originator of NEFT transactions. When basic level aspects are missing, incorporating cyber security in the day to day transactions of banks in India is really difficult. In these circumstances, the decision of RBI to remove financial limits from mobile banking transaction in India can be a trouble than facility. Hopefully, the proposed integrated banking law of India would address all these issues.

However, Indian banks cannot afford to ignore one aspect. The cyber law in India has prescribed cyber law due diligence for various stakeholders. Cyber due diligence for banks in India is just a part of the same. Cyber due diligence for Indian companies including banks operating in India is very stringent. If these due diligence requirements are not followed by Indian banks, civil, criminal and financial penalties can occur.

Cyber security for banking and financial sectors of India is urgently required as they perform very crucial functions. RBI must ensure the same by getting its directions strictly enforced as soon as possible.