Blitz Bureau
NEW DELHI: RBI Governor Shaktikanta Das said on July 19 that banks and financial institutions need to maintain the highest level of vigil and strengthen their IT systems keeping in mind the growing incidences of cyber-attacks globally. The Reserve Bank’s supervisory assessments continue to stress the importance of improving Information Technology governance arrangements; making the technology systems, processes and infrastructure more resilient; and mitigating third-party risks.
Das said that another area of concern was the rise in digital fraud. Though many of such frauds are due to various social engineering attacks on customers, there is also a rapid increase in the use of mule bank accounts to perpetrate such frauds. This exposes the banks not only to serious financial and operational risks but also to reputational risks.
“Banks, therefore, need to strengthen their customer onboarding and transaction monitoring systems to monitor unscrupulous activities, including suspicious and unusual transactions. This also requires effective coordination with the law enforcement agencies so that the concerns occurring at a systemic level are detected and curbed in time,” he added.
