The Reserve Bank of India has placed on its website the “’Technology Vision for Cyber Security’ for Urban Co-operative Banks (UCBs) – 2020-2023”. The Technology Vision Document aims at enhancing the cyber security posture of the Urban Co-operative banking sector against evolving IT and cyber threat environments.

The Technology Vision Document for Cyber Security for UCBs has been formalised based on inputs from various stakeholders. It envisages to achieve its objective through a five-pillared strategic approach GUARD, viz., – Governance Oversight, Utile Technology Investment, Appropriate Regulation and Supervision, Robust Collaboration and Developing necessary IT, cyber security skills set.

With concerted efforts and involvement of all stakeholders, the Technology Vision Document for Cyber Security for UCBs, with its 12 specific action points, aspires to (a) Involve more Board Oversight over Cyber security; (b) Enable UCBs to better manage and secure their IT Assets; (c) Implement an offsite supervisory mechanism framework for UCBs on cyber security related controls; (d) Develop a forum for UCBs so that they can share best practices and discuss practical issues and challenges; and (e) Implement framework for providing awareness/ training for all UCBs.

The cyber security landscape will continue to evolve with wider adoption of digital banking channels, thus necessitating the UCBs to manage the associated risks effectively.

Active collaboration within UCBs and their stakeholders would be necessary for sharing and coordinating various measures taken on cyber security aspects.

The implementation of the approach outlined in this Technology Vision document will strengthen the cyber resilience of the Urban Co-operative Banks.

There have been increasing cases of cyber fraud in co-op banking, which has prompted RBI to unveil Technology Vision for them. While smaller UCBs cannot afford to buy expensive technology on their own, there are several big UCBs which also run the risk of being raided by cyber frauds. Cosmos Bank is a case in point.

Reacting to the news, NAFCUB President Jyotindra Mehta says “ Umbrella Organization is the answer to technological challenges for the UCBs. Here we can pool our resources and buy the best technology for us”, said Mehta.

“What an individual bank cannot afford becomes affordable through the UO. Luckily, the RBI has also seconded the idea and process to firm up the Umbrella Organization is afoot”, he commented.