Page 11 - Banking Finance August 2021

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Reserve Bank News
Reserve Bank News
Reserve Bank News
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Reserve Bank News

RBI's third party audit of As part of this, the bank has invested had any security issues in the past.
in the infrastructure scalability, But this is always an important area
HDFC Bank's IT systems Jagdishan said. "We have invested of focus and action plans are under-

completed heavily in the scale up of our infra- way for further robustness," the CEO
structure to handle any potential load said.
The RBI-appointed third party audit
of country's largest lender, HDFC for the next 3/5 years. We are also in
the process of accelerating our cloud RBI declares new CEO
Bank's IT systems has got over and strategy to be on the cutting edge le-
the audit report has been submitted norms for coop banks
veraging best-in-class cloud service
to the regulator for a final decision, providers," Jagdishan said. Taking a tough stance on the gover-
said HDFC Bank's managing director nance of urban cooperative banks, the
and CEO, Sashidhar Jagdishan in the Further, the bank has strengthened its Reserve Bank of India (RBI) an-
bank's integrated annual report 2020- disaster recovery resiliency, the CEO
said. "We have strengthened our pro- nounced minimum qualifications and
2021. age limits for CEOs and whole-time di-
cess of monitoring our Data Centre
In December last year, the RBI had (DC) and have shifted key applications rectors of these banks as part of its 'fit
banned HDFC Bank from new digital to a new DC. This includes key con- and proper' criteria.
launches, including issuing new credit sumer facing ones. We have strength- The rules gain significance considering
cards and proceeding with the so- ened the Disaster Recovery trials and that in many cooperatives the appoint-
called Digital 2.0 plan following a se- processes so as to bounce back to ment is political, and the central bank
ries of technical glitches reported over serve our customers faster and is slowly tightening its grip over them.
the last two years. Subsequently, the quicker," Jagdishan said. The RBI got the power to regulate co-
RBI also initiated a third party audit One of the reasons often cited by the operatives last year in June after the
of the bank's IT systems. "This audit is
experts for HDFC Bank's technology government issued an ordinance to
now over and the report has been outages was lack of capability in the bring 1,482 urban cooperative banks
submitted to the regulator. We now data centre. In this context, the and 58 multi-state cooperatives under
await the decision from RBI," said bank's announcement is significant. the central bank's supervision.
Jagishan in the report.
Further, the bank has strengthened The new rules come in the wake of
In the annual report, Jagishan laid out the security enhancements over the IT the collapse of several urban coop-
some of the specific initiatives that the systems, Jagdishan said. "We have erative banks, the biggest being the
bank has planned on its technology strengthened our firewalls further. We Punjab and Maharashtra Cooperative
transformation agenda even as the have to be scanning the horizon for (PMC) Bank where the CEO conspired
regulator is awaiting the final nod on potential security issues and be ever with some members to divert funds to
new launches from the RBI. prepared to face them. We haven't real estate developers.

BANKING FINANCE | AUGUST | 2021 | 11