As cybersecurity concerns become a challenge, India's banking system is well-positioned to sustain the nation's growth, as Reserve Bank of India (RBI) governor Shaktikanta Das stated earlier this week.
He noted at the Mint BFSI conclave that a dedicated team of RBI supervisors monitors the IT systems of banks and non-banking financial companies (NBFCs) and identifies loopholes.
“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,” Das explained.
The primary focus of the RBI is to guarantee that the financial system continues to be strong, resilient, and equipped to facilitate India's transition to an advanced economy.
India's recent success story has been largely attributed to the astounding turnaround in the country's banking sector. The banking system in India is currently positioned to help the country's continued economic expansion in the years to come. According to Das, the Reserve Bank has pledged to protect the trust element in the Indian financial system.
Based on my interactions with all serious participants in the banking sector and top management of banks, I receive advice from bank CEOs on potential areas of risk buildup in the banking and NBFC sectors. In the past 6-8 months, at least two or three bank CEOs have privately expressed concern regarding these areas, Das concluded.