Tech-driven urban cooperative banks will now need to appoint an information security officer: RBI
the Reserve Bank of India (RBI) said on Thursday that urban cooperative banks (UCBs) will now have to appoint an Information Security Officer (CISO) and also set up various committees, namely IT strategy committee, IT steering committee, etc.
RBI also proposed to launch a new set of strict cybersecurity rules keeping in mind the complexity of urban cooperative banks (UCBs). This initiative will be taken somewhat to put UCBs on the same level as banks in terms of cyber protection against online threats.
“The approach will ensure that UCBs with high IT penetration and offering all payment services are brought up to par with other banks with mature cybersecurity infrastructure and practices,” the banking regulator said while unveiling its document. technological vision for 2020-23.
According to RBI, UCBs with more digital-based innovations will now have to appoint a Chief Information Security Officer (CISO) and also set up various committees, namely the IT strategy committee, the IT steering committee, etc.
The umbrella bank further stated that UCBs will also need to form an IT governance framework approved by the board of directors keeping in mind its higher implication in costs.
“Responsibility for implementation, monitoring, compliance and response should be assigned to the board level and extend to the end user,” the RBI said.
The recently unveiled vision document for UCBS through 2023 is based on five pillars such as GUARD, namely, governance oversight, investment in useful technology, appropriate regulation and oversight, robust collaboration and the development of the necessary information technologies, cybersecurity skill set.