Page 29 - Banking Finance November 2022

ARTICLE

CYBER SECURITY

POLICY FOR BANKS

- IMPORTANCE AND

CHALLENGES

yber security in Banks has gained paramount the new digital users were new to digital banking. This called
importance as banks have opened up their IT for greater focus for revamping of Cyber Security in Banks
platforms to customers in the name of digitization, and Financial Institutions.
C competition from peers, customer experience,
As Cyber-attacks are carried out continuously on various
reduction of transaction cost. Massive amounts of
organizations, banks became the favourite destination, for
confidential data reside in Bank's data centres and also flow
such attacks. The volume and sophistication of cyber-attacks
through Bank's servers and various networks and devices.
is ever increasing and evolving. Innovation, sophistication,
To protect the IT systems, confidential data of bank's as well
organization of Cyber Criminals is producing ominous results
as customers, and to ensure continuity of business a Cyber
for banks. This has led to Cyber Security rising to the top
Security Policy and a Cyber Security Framework are required
agenda for banks top Management.
for every bank. Government's encouragement since
demonetization in November 2016 has brought
As per G. Gopala Krishna Committee Report, various issues
unprecedented spurt in new digital Banking customers and
were examined arising out of the use of Information
Digital Payments have registered a record growth. Lot of
Technology in banks and made its recommendations in nine
mobile applications were developed by banks and most of
broad areas. These areas are Information Security, Cyber
Fraud, IT Governance, IS Audit, IT Operations, IT Services
About the author Outsourcing, Business Continuity Planning, Customer
Awareness programmes and Legal aspects.
Suraj Kumar Shoundik
However, with the gain in momentum of use of technology
Manager (Research)
State Bank Academy, Gurugram by the banks and on the other hand tremendous increase in
cyber incidents/ attacks in the recent past has pushed the

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