Finmin asks banks to focus on cybersecurity to ensure customer protection

Concerned over the growing instances of cyber frauds, the finance ministry on Tuesday asked public sector banks (PSBs) to align their digital and cybersecurity frameworks with industry best practices and ensure customer protection and operational continuity as top priorities.

During a review meeting chaired by the Department of Financial Services (DFS) Secretary M Nagaraju, discussions were held on enhancing the robustness of PSBs, building on recent financial achievements, and addressing strategic challenges with key focus on financial performance indicators, assets and liabilities management, cyber resilience, and digital payments infrastructure.

The secretary exhorted the public sector banks (PSBs) to accelerate the pace of lending to agriculture and MSMEs as well as deepen financial inclusion.

PSBs were asked to continue strengthening their financial and operational frameworks, particularly in light of the evolving market dynamics and cyber security needs, the finance ministry said in a statement.

During the meeting, the importance of enhancing the current account savings account (CASA) deposits was underlined, reinforcing the need for PSBs to mobilise CASA deposits so as to further accelerate the pace of sustainable credit growth.

"PSBs were advised to align their digital and cybersecurity frameworks with best practices, ensuring that customer protection and operational continuity remain top priorities. Specific emphasis was placed on reinforcing credit support to MSMEs and streamlining customer onboarding processes through digital innovations," it said.

Recently, Prime Minister Narendra Modi spoke about the cyber crime of 'digital arrests', noting that it has hit all sections of society and urging people to adopt the mantra of "stop, think and take action" when faced with such a scam.

In his 'Mann ki Baat' broadcast last month, Modi said probe agencies are working with states to deal with the issue, but added that awareness is essential in protecting oneself from this crime.

Besides, head of PSBs were advised to follow the best HR practices prevailing in the industry for their employees.

The DFS secretary underscored the importance of financial inclusion initiatives of the government and urged PSBs to further intensify their efforts to expand access to various financial services for underserved communities and enterprises.

He also reviewed the progress under various financial inclusion schemes Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri Mudra Yojana (PMMY), Stand Up India, PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi), PM Vishwakarma, PM Surya Ghar Yojana, etc., and other flagship schemes that are aimed at bolstering access to credit and enhancing economic empowerment.

He advised PSBs to give more thrust on technological advancements, robust financial health, timely and quality redressal of public grievances through responsible banking practices and to continue to make concerted efforts for enhancing customers' banking experience.