New RBI guidelines on E Banking security..

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Post written by Vijayashankar Na at March 1, 2013 11:02 am

Categories: Bank, Cyber Crime, Cyber Law, RBI

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This is in continuation of the previous article on the new guidelines of RBI on E Banking security issued on February 28, 2013. Apart from the card related security measures covered in the previous article, theRBI circular also touches on some of the aspects of RTGS,NEFT and IMPS. The recommendations are 1.Customer induced options may be provided for fixing a cap on the value and mode of transactions/beneficiaries. Additional authorization may be insisted when the customer wants to exceed the cap. 2.Limiting the number of beneficiaries to be added per day to be considered. 3.System alert to be introduced for beneficiary addition. 4.Number of transactions per day/per beneficiary may be monitored for suspicious transactions 5. Introduction of additional factor of authentication (preferably dynamic) for unusual transactions to be authenticated on special request. 6.Banks may consider implementation of digital signature for large value payments for all customers, to start with for RTGS transactions. 7.IP address capture for transaction may be considered. 8. Adaptive Authentication (means of providing authentication for end users without them having to know it is as work)may be considered for fraud detection. These suggestions are also on the lines suggested by the Damodaran Committee on Customer service.

Though the circular uses the word may while referring to these suggestions, it mentions at the end that all these suggestionsare Expectedto be put in placeby banksby June30, 2013. Naavi.org is happy that our long fight for better security in E Banking is bearing fruit. Now we need to watch if Banks actually implement these suggestions and whether RBI will enforce its dictum. In the past, Banks have simply ignored RBI guidelines and faced adverse comments in inspections as a matter of routine. RBI is also aware of such tendencies in some Banks. Hopefully this time RBI will use its powers to enforce compliance. Public are with RBI if they take strong measures to protect E Banking.

Once again, I personally and Naavi.org as a representative of public congratulate RBI on its initiative in issuing this circular.

Anti-Corr !tion "nitiati#es

Reserve Bank of India $%&"': (rans!arency "nternationa)*s +)oba) Corr !tion %e!ort 200, states that the "n-ian Centra) &ank ! b)ishe- . i-e)ines in 200/, takin. serio s note o0 com!)aints recei#e- a.ainst reco#ery a.ents 0or ab si#e !ractices an- #io)ation o0 . i-e)ines1 (his initiati#e by the %&" aims at ens rin. that banks re0rain 0rom hirin. -isre! tab)e !eo!)e to reco#er -ebts an- to !re#ent ma)!ractice in the o00erin. an- mana.ement o0 )oans by banks1 (he . i-e)ines inc) -e !ro#isions 0or the recor-in. o0 ca))s ma-e by reco#ery a.ents to c stomers an- #ice #ersa, !)acin. an !-ate- )ist o0 reco#ery a.ents on the bank*s website, !erio-ic #eri0ication o0 antece-ents o0 em!)oyees o0 reco#ery a.ents, which may inc) -e #eri0ication thro .h !o)ice, an- a--itiona) con-itions 0or re!ossession o0 assets1 (o achie#e this, it has threatene- errin. banks with a ban on en.a.in. reco#ery a.ents in a !artic )ar area, either j ris-ictiona) or 0 nctiona), 0or a )imite- !erio-1

Sept 192013
Fake Indian currencies have taken a toll in our country and have been creating a huge problem in the recent years. Even though in our busy schedule e tend to transact our money through cards or online! but it is important "or all o" us to identi"y "ake currency! especially hen the transaction is related to higher denomination. It is highly important "or consumers to get educated in distinguishing "orged currency notes and there"ore one needs to get "amiliar ith the real Indian currency. In the year 2010#2011 the $eserve bank o" India has stated that there are about %&!'(( appro)imate notes in the market. *nd the shocking ne s is that most o" the "orged notes are "ound in *+, machine hen the transaction is done! particularly "or I-$ '00 and 1000. +he toll has increased in 2012 #2013 "ake notes on 1000 I-$ notes. +he annual reports say that there are 9.!&'9 "orged notes o" 1000 I-$ detected in the present year than compared to previous years. +he number ould decrease i" more people get a are o" this situation. ith the rise in

Paisa Bolta hai Live

+he $/I0s ne ly launched counter"eit currency. +he ebsite has e)plained bank note "eatures in very easy ay "or public to detect ebsite 12aisa boltahai.rbi.org.in3 provides a visual presentation on currency like ebsite has described the security "eatures ith about ho to detect "ake 10! 20! '0 .100! '00 and 1000 rupee denominations. +he

numbers on a note. 4hen clicking on those numbers! people can get to kno

notes in more details. In "act! consumers can do nload posters o" this currency as their re"erence. 5ocumentary "ilms are also uploaded on the ebsite "or better understanding. +hese "ilms can be do nloaded in various languages "or clearer vie s. Fre6uently asked section can also clear your 6ueries.

Strict Measures to Stop Fake Currency

+he estimation is yet unkno n to the bank but the detection has been done by the banking system. In "act things are turning into the path o" improvement as the banks are taking more initiative to teach the public and cash handler to detect "orged note. E)tensive training is provided to the cash handlers "or this reason. $/I has also taken initiative to increase note sorting machines in banks. 4ith this! bank can no detect more "ake notes. In "act $/I is no "ollo ing re arding policy. It has introduced a re ard policy to banks "or detecting and

reporting about "ake currency at their o""ice. I" by chance it is not reported it ill be taken into consideration as involvement o" bank in this matter. +he "orged notes should be kept separately ith proper "orged note stamp. /ank should also monitor the pattern o" such case and report to the police authority. *part "rom $/I! banks use to report the same at Financial Intelligence Unit. $/I ebsite 12ehchano 2aise 7i /oli! 7yunki 2aisa /olta 8ai3 ill surely help in reducing such "ake note currency.