The RBI has expressed worry over the fact that the bank’s online and digital banking channels, as well as its core banking system, have had frequent breakdowns over the past two years, seriously inconveniencing customers, and are not supported by “a robust IT infrastructure and IT risk management framework.”
On April 15, there was one such significant outage of service.Even though the RBI made it clear that there were no restrictions on continuing to provide services to current clients, including those who used credit cards, the bank was nonetheless judged to be lacking in developing operational resilience.
Source: Moneycontrol
Regarding non-compliance with the code of conduct for outsourcing financial services, customer service, recovery agents, loans, and advances, the RBI fined the bank Rs 3.95 crore in October 2023. Once again finding itself in a difficult situation, the bank said that it would order an extensive audit of its IT systems to be conducted with the RBI’s “approval and supervision.”
The central bank of India deserves praise for acting proactively in the best interests of its clients.All banks should take note of this harsh reminder: they cannot afford to take their digital banking and payment systems for granted.
Source: Moneycontrol
Because digital transactions now dominate the financial ecosystem, banks must make significant investments in tech infrastructure to guarantee the security of their customers’ money. Criminals are constantly searching for gaps in the financial system’s defences. Tech platforms are constantly being tested for their resiliency. If banks don’t take proactive measures to fix the issues, the public’s confidence in the banking system would suffer greatly.
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