Cooperative banks need to gear up to Internet Banking

The discussion paper on Disincentivisation of cheques issued by RBI has indicated a hard policy push towards use of E Banking in the form of Internet Banking and ATM.

Many of the Cooperative Banks and Regional Rural Banks may not have Internet Banking facility at present. With what RBI implies, these Banks have to quickly introduce internet banking since the customers of the Bank will find it difficult to issue or receive cheques from their own clients since this will introduce a higher cost element to the transactions.

This will be a serious challenge not only to the IT departments but also the manpower training departments of these Banks to ensure that the Banks are adequately prepared for the change. If they delay the transition, their business may suffer.

Naavi

About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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One Response to Cooperative banks need to gear up to Internet Banking

  1. steve says:

    This is strange… Our co-operative banks are clearly not ready. Infact, as a matter of fact banks in india are not ready to comply with the recommendations made by RBI for cyber security.
    co-operative banks are miles away… without strict compliance with regard to cyber security there will be surely an exponential increase in ebanking frauds. As the staff of co-operative banks is not well-trained in this matter and the management is not ready to step up the cyber security measures, This will add up more to the existing problem.
    Even, the current ‘netbanking’ facility offered by some co-op banks has connection which is only http protocol- this means that the data sent to and from the client to server can be intercepted by a malicious cracker to compromise the bank account.
    As the current standard must be https protocol.
    if modernization continues without security measures, this will create a lot of havoc to the common man with limited knowledge in ebanking system

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