For instance, although the Reserve Bank of India (RBI) has mandated for strict cyber security requirements for banks of India yet most of the Indian banks have done nothing in this regard. RBI has also insisted upon ensuring of cyber security of banks in India. In fact, recently RBI warned Indian banks for inadequate cyber security as well. This is resulting in increased financial crimes and cyber crimes in India.
The cyber laws and cyber security trends in India 2011 by Perry4Law and Perry4Law Techno Legal Base (PTLB) also proved this point. Even the mobile cyber security in India is missing. In these circumstances, mobile banking in India has become really risky. In fact, mobile banking cyber security in India is almost missing and this has put the customers at grave risks. Mobile banking cyber security is required in India on a priority basis before any mobile banking scheme is launched in India.
Although Internet banking guidelines in India by RBI have been issued yet no such guidelines have been issued by RBI regarding mobile banking so far. Further, it is also not clear who would bear the loss arising out of a banking transaction that is a direct result of a financial or cyber crime. Banks are passing the buck to consumers even when they are at fault by not ensuring sufficient cyber security.
Banks of India are not realising that they are under a legal obligation to ensure cyber law due diligence for their banking transactions. In the absence of cyber law due diligence, it is the responsibility of banks of India to bear any loss arising out of any financial or cyber crime.
Perry4Law and PTLB recommend that banks in India must not only ensure cyber security for their transactions but also adhere to the cyber law due diligence requirements as are mandatory in India.
Source: PTLB Blog