NEW DELHI: The finance ministry has asked state-run banks to strengthen their information technology systems after security agencies warned they were vulnerable to cyber attacks. Security agencies are on a strict vigil against such attacks on the country’s banking system and are working closely with the regulator, the , a senior government official said. “We are monitoring the developments. The finance ministry has also asked banks to take precautions and strengthen their IT systems,” the official said. A senior Intelligence Bureau official told ET that it has taken up the matter with banks and asked them to not only employ software professionals to upgrade their systems but also plan long-term solutions to tackle these threats. “There is also an urgent need to add a robust crisis management plan for these banks,” the official said. In July, reported that there was an attempted cyber breach in one of its offshore accounts. “The money trail was promptly traced and movement of funds blocked. Resultantly, there is no loss caused to the bank,” the staterun lender had said in a regulatory filing on July 22. Banks reported 16,468 cases related to cyber fraud in 2015-16, including and net banking cases, according to RBI data. The RBI has also asked banks to implement a board-approved policy by September 30, which mandates arrangements for continuous surveillance. Banks have been told to share information with the RBI, ensure a supervisory reporting framework and organisational arrangements, the official added. Banks need to come up with a security-conducive IT architecture, network and database security, protection of customer information and a cyber crisis management plan, the RBI said in a circular in June. The government has also formulated a ‘Crisis Management Plan’ to counter cyber attacks and cyber terrorism that’s to be implemented by all central ministries, state governments, their organisations and critical sectors. An executive with a state-run bank said,“We are closely working with both the finance ministry and the RBI on the issue,” he said. Information related to cyber crime cases, cyber incidents and banking frauds are registered in by the National Crime Records Bureau, the Indian Computer Emergency Response Team and the RBI. The finance ministry’s caution makes sense. Cyber attacks on information systems in critical sectors such as banking have been increasing steadily over the years. India is no exception. Banks follow practices such as compliance and audit for information security against standards ISO 27000. They must also build and maintain robust operational systems, riding on the Indian IT industry which has shown global reputation in banking products and services. Banks, government, regulators and the IT industry should work in a coordinated way.
India's finance ministry has advised state-run banks to bolster their IT systems following a warning from security agencies about the risk of cyber attacks. It includes hiring software professionals to review and upgrade their systems where necessary, improving network and database security, and protection of customer data. The Reserve Bank of India has recommended that banks have a crisis-management plan in place to tackle the growing threat of cyber attacks that could potentially cripple India's banking system.