Amid escalating cyber threats, the Reserve Bank of India (RBI) has released a comprehensive advisory to all scheduled commercial banks. This advisory, disseminated by the Department of Banking Supervision in Mumbai, stresses upon the paramount importance of robust cybersecurity measures in the modern digital banking infrastructure.
The advisory highlights the crucial role of Corporate Governance in maintaining accountability within banks, emphasising that IT Governance is a key component of this framework. The RBI stresses that effective IT Governance necessitates strong leadership, a clear organisational structure, and efficient processes. Responsibility for IT Governance, the advisory states, lies with both the Board of Directors and Executive Management.
With technology becoming integral to banking operations, nearly every commercial bank branch has adopted some form of digital solution, such as core banking systems (CBS) and alternate delivery channels like internet banking, mobile banking, phone banking, and ATMs. In light of this, the RBI provides specific guidelines to banks for enhancing their IT Governance.
The RBI recommends that banks clearly define the roles and responsibilities of their Board and Senior Management to ensure effective project control and accountability. Additionally, it advises the establishment of an IT Strategy Committee at the Board level, comprising members with substantial IT expertise. This committee is tasked with advising on strategic IT directions, reviewing IT investments, and en
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