As cybersecurity concerns become an issue, India's banking system is well positioned to support the country's growth, said Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday.
He stated at the Mint BFSI summit that a dedicated team of RBI supervisors investigates the information technology (IT) systems of banks and non-banking financial companies (NBFCs) and points out flaws. "Increase emphasis on IT and cybersecurity risk." Going forward, the robustness of their IT systems and the danger from cybersecurity could provide a significant challenge to all financial institutions."
"As part of our supervision, we look at the IT systems of banks and NBFCs, particularly banks." "We have a team that 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, we immediately bring it to the attention of management so that corrective measures can be taken," he said.
The RBI's principal focus is to ensure that the financial system is resilient and robust, and that it is fully prepared to assist India's journey to become an advanced economy.
"In recent years, the remarkable turnaround in the Indian banking system has been the cornerstone of India's success story." The Indian financial system is now well positioned to assist India's economic story in the next few years. "The Reserve Bank has pledged to protect the trust factor in the Indian financial system," Das said.
"Based on my conversations with all serious players in the banking sector and senior management of banks, I do get input from bank CEOs about potential areas of risk buildup in the banking and NBFC sectors. In the last 6-8 months, at least two or three bank CEOs have privately told me...these are the areas in which they are also concerned," he stated.
