Page 55 - Banking Finance December 2016

Data Security is

essential for

Digital India

Dr. Rajendran N.
Chief Technology Officer, NPCI

India is witnessing innovation-driven revolution in assume that banks maintain robust security infrastructure
payments domain and several fintech organisations are at their end and hence they could target breaching data at
helping the ecosystem to realise the dream of creating a third party location. For instance, a customer swipes his
less-cash society in India. Banks and other financial card or shares his account details along with address
institutions are also leveraging technology to introduce information while booking a hotel room. Cyberattacks are
new payment solutions for their customers. not only restricted to banking sector, other sectors like
healthcare, telecommunications, media, government etc.
But some new-fangled organisations are also generating are also equally prone to such instances.
and storing a lot of consumer data like account details,
address, email ids etc. as a result it is very important to It would be a feasible investment to develop an
maintain high quality standards for securing data. infrastructure where customers are not required to share
Customers are sharing their vital information at multiple repetitive information for authentication and identification
locations under the influence of attractive cash-back offers purpose. A common mechanism could be developed which
and several other reasons. As connected devices continue has the capacity to identify individuals, validate and
to grow, possibilities of such sensitive information used by authenticate the transactions without sharing physical
malicious actors are increasing too. In such a situation copy of the identification proof and not storing vital
monetisation of data poses a significant threat. Most of the information about customer except id number. For
attacks in recent past are malware attacks and there is no example: Aadhaar number with demography details
certainty that which cybersecurity threats will arise in the validated online. Such centralised mechanism could be
future. useful to avoid duplications and diminish vulnerabilities.

It is a good development that organisations are now Till such mechanism is in place, it is very essential that
exploring innovative and effective tools to safeguard prevalent measures to create awareness about security
against cyber criminals. They are hiring Chief Information culture are built. Awareness training materials,
Officers (CIOs) and Chief Information Security Officers vulnerability assessment tools and other policies should be
(CISOs) of the world and are investing in layered security well briefed at executive and board levels in the
infrastructures. organisation. Implementing and maintaining appropriate
security hygiene is highly advisable. Also, to be threat-
It is also important to identify and secure various channels aware, cyber awareness programmes should be conducted
from where the data could be compromised. Banks and for sharing best practices.
financial institutions need to open up their channels
through 24x7 which include online access through public Arena of payments is very dynamic in nature and hence it is
internet and also through the mobile. This expands their a good practice for ethical purposes to remain ahead of
network with added security challenges. Criminals can criminal institutions.

BANKING FINANCE December 2016 55

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