Since 2010, Banks in India have rapidly adopted newer technologies and digital channels, with the underlying objective of increasing footprints and revenues. We have also seen customer preferences shift towards digital platforms. There is a perception, though, that the adoption of advanced cyber security practices has not kept pace with the rate of evolution of core business-enabling technology. While in comparison to several other sectors, banks are definitely seen to be more proactive in investing and improving security practice, such measures may still be inadequate considering the challenges with the traditional approach to IT security are:
A paradigm shift has recently been observed in attacks exploiting the source, behaviour, motives and vectors. This indicates that the traditional multilayered defence that banks already have is not adequate. Globally, there is a rise in cyber security incidents and several of them have been large-scale breaches, frauds and heists. The impact of such breaches does not end with serious financial loss but, in most cases, can also potentially erode substantial brand value. RBI has taken a step in the right direction by realising the inherent need for banks to strengthen their cyber security posture in the wake of the increasingly sophisticated nature and quantum of attacks.
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