Internet banking is a popular and convenient method of doing online banking transactions. We have no dedicated Internet banking laws in India but the Reserve Bank of India (RBI) has issued some guidelines in this regard. However, Internet banking guidelines in India by RBI are not sufficient to make the banks follow robust and required cyber security procedures.
This means that Internet banking risks in India are high and even RBI acknowledged risks of e-banking in India. Despite this position, banks in India are ignoring the cyber security due diligence requirements prescribed by RBI. The online banking risks in India have increased tremendously due to this position.
RBI has also released a report of the RBI working group on securing card present transaction in order to provide preventive measures for ATM frauds in India. Sill Internet banking frauds in India and ATM Frauds are increasing. Banks in India are not serious about cyber security and they are not following the recommendations of RBI.
RBI has also insisted upon ensuring of cyber security of banks in India. In fact, recently RBI warned Indian banks for inadequate cyber security as well. This is resulting in increased financial crimes and cyber crimes in India. Mobile banking cyber security in India is also at risk.
The legal issues of Internet banking in India must be taken more seriously by all stakeholders especially the Indian banks. However, better results cannot be achieved till cyber security requirements made mandatory on the part of Indian banks.