Tech-driven Urban Co-op Banks will now have to appoint Chief Information Security Officer: RBI

RBI

The Reserve Bank of India (RBI) on Thursday said that urban cooperative banks (UCB) will now have to appoint Chief Information Security Officer (CISO) and also set up various committees namely IT Strategy Committee, IT Steering Committee, etc.

RBI also proposed to launch new and stringent set of cybersecurity rules keeping the complexity of urban cooperative banks (UCB) in mind. This initiative will be taken in a bit to bring UCBs at par with banks in terms of cyber protections against online threats.

 “The approach will ensure that the UCBs with high IT penetration and offering all payment services are brought at par with other banks having mature cyber security infrastructure and practices,” said the banking regulator while unveiling its technology vision document for 2020-23.

Also Read: RBI pushes usage of digital modes for banking transactions

According to RBI, UCBs with higher digital based innovations will now have to appoint Chief Information Security Officer (CISO) and also set up various committees namely IT Strategy Committee, IT Steering Committee, etc.

The apex bank further said that UCBs will also have to form board approved IT governance framework keeping its higher cost involvement in mind.

“The responsibility for implementation, monitoring, compliance and response would have to be assigned from the Board level and percolate down till the end user,” said the RBI.

Also Read: RBI cancels registration of 120 non-bank lenders, put 50 under close watch

Recently unveiled vision document for the UCBS till 2023 is based on five pillars  such as GUARD, viz, – Governance Oversight, Utile Technology Investment, Appropriate Regulation and Supervision, Robust Collaboration and Developing necessary IT, cyber security skills set.

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the NBFCs and Insurance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.