Data Security, Cyber Security And Privacy In Indian Banking Industry

Banking industry of India is passing through a transformation age. From technological upgradations to enacting new regulatory norms, banking sector of India is all set for a big change. However, this change is also very demanding and challenging in terms of legal obligations and technological knowledge. Banks in India are finding it difficult to cope with both.

For instance, banks in India are required to not only ensure cyber due diligence in India but also cyber security due diligence in India. Reserve Bank of India (RBI) has very categorically told Indian banks to ensure effective cyber security in their day to day affairs and banking transactions. However, banks in India are not complying with RBI’s cyber security due diligence requirements due to lack of awareness and technical expertise.

Further, on the compliances front as well, banks in India are not doing the needful. For instance, as per RBI’s recommendations, all banks should create a position of chief information officers (CIOs) as well as steering committees on information security at the board level at the earliest. Till now banks in India have not fulfilled these requirements.

Similarly on the front of cyber security Indian banks have not performed well. Cyber security for banking and financial sectors of India is not up to the mark. Internet banking risks in India are in abundance and we have no cyber security of Internet banking in India. Even cyber due diligence for banks in India is not taken seriously by Indian banks. Cyber security of online banking systems in India is by and large below average and many cases of banking financial frauds and cyber crimes have been reported in India.

Even the mobile banking in India is risky as the present banking and other technology related legal frameworks are not conducive for mobile banking in India. We have no dedicated Internet banking laws in India or mobile banking laws in India. Mobile banking transactions in India are risky and untrusting in the absence of mobile cyber security in India. We are still not ready for mobile governance in India as m-governance in India is not going to be successful in the absence of a sound mobile governance policy of India.

Data security and privacy in Indian banking industry is another area that requires special attention of Indian banks. Banks in India must ensure privacy protection and data protection of its customers.

The corporate and banking laws in India are in the process of being streamlined. An Integrated modern banking law in India is also in pipeline. RBI has also prescribed an enhanced due diligence measures by banks of India for higher risks customers. Overall, the emphasis is upon ensuring data security, cyber security and privacy protection by banks operating in India.

Cyber Law Lawyers And Law Firms in India

Cyber law is a technical subject that requires thorough understanding of both technical and legal aspects. This is the reason why most of the lawyers and law firms find it difficult to deal with the same.

There are very few cyber law firms in India and cyber law lawyers in India. Even lesser are cyber security law firms in India. Similarly, e-commerce lawyers and law firms in India also limited in number.

When it comes to cyber forensics law firms in India, we have a single firm in India that provides techno legal cyber forensics litigation, consultancy, corporate advisory and skills development services. Perry4Law is the sole techno legal ICT and IP law firm of India and world wide.

Further, Perry4Law Techno Legal Base (PTLB) is the premier techno legal segment of Perry4Law that takes cares of various techno legal services of Perry4Law.

With the passage of information technology act 2000 (IT Act 2000), the foundation for cyber law of India was laid down. However, even after more than 10 years of passing of the same, very few lawyers, judges, police officers, etc are aware of the same. This ha also led to a limited growth of cyber law jurisprudence in India.

There is an urgent need develop techno legal skills of lawyers, police officers, judges, etc in India. Suitable trainings and skills development exercises must be undertaken by Indian government in this regard.

Corporate And Banking Laws In India Rejuvenated

Of late, parliament of India is working really hard in the direction of rejuvenating corporate and banking laws of India. Many important bills are pending in the lok sabha that if passed would strengthen the corporate and banking laws of India.

Corporate laws in India are old and outdated. The Companies Bill 2011 has been tabled in the Lok Sabha. Similarly, banking laws in India are also outdated and does not accommodate the modern technology.

A significant development in this regard is happening in the banking sector of India. An integrated modern banking law for India is in pipeline. The parliamentary standing committee on finance has suggested for such integrated law for the banking sector of India.

However, Reserve Bank of India (RBI) need to implement the technological aspects more stringently and effectively. While RBI has acknowledged risks of e-banking in India still the proposed bill has not addressed the issues of online banking risks in India and their redressal. Although RBI has recently directed that all banks would have to create a position of chief information officers (CIOs) as well as steering committees on information security at the board level at the earliest yet these recommendations have not been implemented by the banks. Indian banks are poor at cyber security implementation.

Further, crucial issues like encryption standards for banks of India have also been ignored. Further ATM frauds in India and their techno legal prevention has also been missed by the committee. Cyber law due diligence for banks in India and Internet intermediary liability for banks of India have also skipped the attention of the committee. It would be better if the parliament of India also considers the techno legal issues and add them to the proposed Banking Laws (Amendment) Bill, 2011 before passing the same.