Page 46 - Banking Finance February 2025

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Banks, governments, and cybersecurity organizations are Resource Constraints: Smaller banks may lack the financial
also vital. Initiatives such as joint cyber drills, public-private and technical resources to implement robust cybersecurity
partnerships, and global forums enable the Banking industry measures.
to pool resources and knowledge against common threats.
Regulatory Compliance: Navigating a complex landscape
of regulations across jurisdictions can be burdensome.
The Reserve Bank of India (RBI) plays a key role in
preventing cyber-attacks on Banks in India by requiring banks Customer Behaviour: Customers who use weak passwords
to implement cybersecurity measures. or fall victim to phishing attacks expose themselves and
banks to risks.
Role of RBI:
Talent Shortage: The global shortage of skilled cybersecurity
Issuance of Guidelines: The RBI issues guidelines to Banks
professionals exacerbates the challenges of maintaining
on cybersecurity, including how to protect customer data robust defences.
and prevent data leaks.
Guidelines on Data leak prevention: Banks should
have a strategy to prevent data leaks, including data in Conclusion:
motion, data at rest, and data processed on endpoint The rapid growth of digital banking has transformed the
devices. financial industry, offering unparalleled convenience and
Guidelines on Security controls: Banks should efficiency. However, this evolution has also exposed banks
implement security controls to protect against threats to an increasing number of sophisticated cyber threats. The
like DDoS attacks. ever-evolving landscape of cyber threats poses a significant
challenge to the banking sector, demanding a multifaceted
Guidelines on Incident management: Banks should
have a process for managing cybersecurity incidents approach to ensure security and resilience.

Guidelines on Vendor risk management: Banks should Prevention, detection, and response mechanisms are no
manage security risks associated with outsourced
longer optional but essential pillars of a robust cybersecurity
arrangements
strategy. By leveraging cutting-edge technologies, adhering
Guidelines on Vulnerability assessment: Banks should to stringent regulatory requirements, and fostering
conduct vulnerability assessments, penetration tests, collaboration across the industry, banks can significantly
and red team exercises enhance their defences against cyber-attacks.

Monitoring: The RBI requires banks to continuously monitor
for cyber threats and report any incidents Equally critical is the emphasis on cultivating a
cybersecurity-first culture, ensuring that employees,
Cyber Security Operations Centre (C-SOC): The RBI
requires banks to establish a C-SOC to detect and respond customers, and stakeholders remain vigilant and informed.
to threats in real time It is important to adopt advanced technologies like artificial
intelligence and machine learning for threat detection,
Cybersecurity policies: The RBI requires banks to create
implement multi-layered security protocols, integrate
cybersecurity policies that adhere to IT and IS security
proactive strategies, rapid incident response framework and
policies
foster a culture of cybersecurity awareness among
Education: The RBI's Orange Team educates employees and employees and customers.
stakeholders on cybersecurity’s best practices

As the threat environment continues to evolve, proactive
Challenges in Cybersecurity: investment in cybersecurity infrastructure and continuous
Despite advancements, banks face several challenges in innovation will be key to safeguarding the trust and integrity
combating cyber threats: that underpin the Banking system. Ultimately, a secure

Sophistication of Attacks: Cybercriminals continually Banking ecosystem not only protects financial assets but also
develop more advanced methods, often outpacing defence. sustains confidence in the global financial system.

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