Cyber crimes in India are on rise thanks to the growing use of information technology. With limited numbers of cyber law firms in India, these cyber crimes are not reported properly. Even the cyber security of India is still catching up with the present requirements.
Cyber security of banks in India is also not upto the mark. The mobile banking cyber security in India is also missing. The preventive measures for ATM frauds in India are also missing. The truth is that Indian banks are poor at cyber security. The online banking risks in India are increasing due to this indifference towards cyber security.
RBI has recently issued a report titled Report on Trend and Progress of Banking in India 2011-12. RBI needs banks to build a robust mechanism to prevent incidents of fraud in areas of mobile/net banking and electronic fund transfer. RBI has already issued guidelines pertaining to national electronic funds transfer (NEFT) system of India but banks in India are not providing positive confirmations of NEFT transactions.
Ensuring effectiveness of the banking sector by way of technology combination while minimising the incidences of fraudulent cases has become one of the major objectives of the RBI in recent years.
According to RBI, complaints related to unauthorised fund transfers, fraudulent withdrawals from ATMs using duplicate cards, phishing e-mails aimed at extracting personal information have registered significant increase in recent times. RBI’s ombudsman office is already flooded with ATM related complaints in India.
RBI must take a hard stand against defaulting banks who have not adopted sound cyber security policies and strategies for Internet banking and other online financial transactions.
Source: PTLB Blog.