Cybersecurity threat to banking system a major challenge: RBI Governor

Regulator has dedicated team to check IT systems of banks and NBFCs, says Shaktikanta Das

India’s banking system is well placed to support the country’s growth as threats to cybersecurity become a challenge, said Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday

A dedicated team of RBI supervisors studies the information technology (IT) systems of banks and non-banking financial companies (NBFCs) and points out loopholes, he said at the Mint BFSI conclave. “Enhance focus on IT and cybersecurity risk. Going forward for all financial institutions, the robustness of their IT systems and threat from cybersecurity can become a major challenge.”

“As a part of our supervision, we also look at the IT systems of banks and NBFCs – the banks more particularly. We have a team which looks into the robustness of the IT systems, they go deep into the IT systems of various banks and NBFCs and wherever we see gaps or loopholes, it is immediately brought to the notice of the management to take corrective measures,” he said.

The RBI’s primary emphasis is to ensure that the financial system remains resilient and robust and fully prepared to support India’s journey to become an advanced economy.

“The remarkable turnaround in the Indian banking system has been the cornerstone of India's success story in recent years. Today the Indian banking system is well placed to support India’s growth story in the years ahead. The Reserve Bank has committed itself to safeguard the trust factor in the Indian financial system,” Das said.

“All serious players in the banking sector and senior management of banks, based on my conversation with them, I do get inputs from bank CEOs about possible areas of risk build up in the banking and the NBFC sector. In the last 6-8 months, at least two or three bank CEOs in private told me…these are the areas which they are also getting worried about,” he said.

The objective of RBI’s supervision is to be proactive in identifying and addressing emerging risks. “In fact the recent regulatory macro prudential measures that we have announced were a result of this kind of supervision,” he said.