Reserve Bank Of India announced a slew of new measures to ensure the safety of ATM transactions going forward. In its bi-monthly monetary policy statement, the central bank noted that a number of commercial banks, urban cooperative banks and other regulated entities are dependent upon third-party application service providers for shared services for ATM Switch applications.
The bank stated in the policy statement, “Accordingly, it has been decided that certain baseline cyber security controls shall be mandated by the regulated entities in their contractual agreements with these service providers to strengthen the systems.”
The detailed guidelines in this regard will be issued by RBI by December 31, 2019. The bank stated that mandatory guidelines would require the service provides to implement several measures to strengthen the process of deployment and changes in application softwares in the ecosystem, continuous surveillance and implementation of controls.
“The guidelines would require implementation of several measures to strengthen the process of deployment and changes in application softwares in the ecosystem; continuous surveillance; implementation of controls on storage, processing and transmission of sensitive data; building capacity for forensic examination; and making the incident response mechanism more robust,” RBI said.
The bank also mentioned in the policy statement that the aggregate limits for both borrowers and lenders across all NBFC peer-to-peer (P2P) platforms will be increased from Rs 10 lakh to a cap of Rs 50 lakh while doing away with the current requirement of escrow accounts to be operated by bank promoted trustee for transfer of funds having to be necessarily opened with the concerned bank. This will provide more flexibility in operations.
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