Reserve Bank of India (RBI) is under great stress these days. Besides managing its own banking objectives and responsibilities, RBI has to analyse and tackle the growing challenges posed by technology to the banking segment of India.
Whether it is ATM frauds, Internet banking frauds, credit card frauds, RTGS frauds or any similar fraud, banks in India are exposed to numerous forms of technical and cyber security vulnerabilities.
Banks are passing the buck to the end customer and the end customer is at loss even if he is an innocent victim. This is the reason why the Code Of Bank’s Commitment to Customers by Banking Codes and Standards Board of India (BCSBI) has been formulated.
Some of the significant developments that have recently taken place in the banking sector of India and that intend to bring banking reforms in India are:
However, the RBI has still not been able to manage the technological issues that keep on surfacing day by day. For instance, RBI has failed to regulate the free and unregulated use of Bitcoins in India. Despite the pressing requirements, RBI has maintained a silence on this crucial aspect. This is giving a negative impression about RBI and Bitcoin exchanges are openly dealing in Bitcoin without actually complying with Indian laws.
Further, the banks in India have also failed to comply with the Internet intermediaries requirements the cyber law due diligence requirements (PDF). Banks in India have also failed to comply with various directions and guidelines issued by RBI vis-à-vis cyber security requirements from time to time.