A senior official of the Reserve Bank today said 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, as envisaged under its IT Vision 2011-17 released the other day. Reserve Bank executive director G Gopalakrishna, speaking to reporters on the sidelines of a banking technology conference here, further said the banks will have to implement the facility of “second factor verification” at merchant establishments and ATMs shortly.
“Many small banks do not have a designated CIO and also do not have a clear framework on information sharing…Over a period of time we want to access all the information from the main server of the bank once the RBI”s IT Vision is implemented. Those banks having no CIOs and a steering committee will have to have these positions implemented at the earliest,” he said.
“Against the current practice of seeking the password, banks will have to ensure that ATMs and points of sale (Poses) will have the second factor verification soon to avoid any room for fraud,” Gopalakrishna added.
The second factor verification is a facility that helps prevent fraudulent transactions during online purchases, by asking the buyer or payee to give a second password which is not the three-digit CVC number in the case of a credit card and the ATM password in the case of a debit card. Currently this is not mandatory at the Poses and ATMs.
It can be noted that the RBI on February 28 had released its IT Vision 2011-17 document, which seeks to make the use of information technology beyond core banking and into newer areas like management of information systems (MIS) and better regulatory reporting.
i am not crying for my son Dear Mr. Poojay,why are crying ? This not a matter to highlight in the audit report do you understand ? Fact is fact .Every body in the country knows/ experienced the fact. Needs to monitor in the affairs of Nationalized bank for batting well with other private and foreign banks in India.
Though improved ,yet still many things to implement. Can”t be improved over night.
why RBI then issue directive. It will be implement and every sectors will be benighted.
Suppose Customers complaints previously not entertained smoothly ,honestly but now banks are bound to resolves well with in the time ,other wise amongst other thing auditors are bound to detect and make the management to put unresolved complaints in the management replies by way of adequate disclosures in those financial statements ( Quarterly/ half yearly / nine month-ended / for the year ended ). If need be go though at least publication of Financial statements of banks and other bodies in the month of May/ July/ October and January every year. Under stand Mr. Pooja?
CA.Subhash Chandra Podder
FCA. 12073 ( of 1970 )
Date 15/03/2011
Dear Poddar,
will you please inform till date in how many of your audit Report you have recorded this.
I think none. Now you are crying just for your son’s matter.
It is needed with immediately. Bank branches should be closely monitored , all inefficient persons are promoted /favored the post of Branch Managers should be stopped urgently. my long association with the Nationalized Bank either as a Central Statutory Auditors, Branch statutory auditors , internal , concurrent, stock auditors and others services provided by the Chartered Accountants, ( since 1970 post qualification ) i have the opportunity to see that majority of the Branch Mangers and other officials does not have the time to see the banks own circulars, does not have the time to see the R.B.I sites and circulars etc. they are blaming shortage of staff etc.those fellows should be monitored by the newly created Post as directed /communicated by R.B.I.on 28/02/11 i have the opportunity to meet customer of a private sector bank of repute while discussing with them i was quite surprised that the Manger does not know what types of asset they are having , saying computer, furniture, chair table.etc. clicking computer and ATM. mobile net banking, internet banking etc., again on 02/03/ 11 . of a nationalized bank the manager i ask him where are your stamps and stationery register and stock ? said i have only Rs. 15 revenue stamps in hand. i need a special adhesive stamp of Rs.10/ require for hiring of Safe deposit Locker with that branch for my Son . for that my son had to make complain against the Manger of that bank to different authorities by E-mails. what we expect from them. AMM ADMI ARE WORST SUFFERS IN THE COUNTRY. UNDER THIS CIRCUMSTANCE I FEEL R.B.I DID CORRECT STEP TO IMPLEMENT URGENTLY. IN OUR COUNTRY URGENT MEANS TO FOLLOW SO MANY DAYS MAY IT BE 365 DAYS OR MORE ! A GOOD WORKSHOP NEEDED AND MANDATORY TO SECTIONS OF BRANCH MANAGER TO ATTEND BY PAYING FEES OUT OF THEIR POCKET AS WE ARE DOING SEMINAR/ CONFERENCES/ WORKSHOPS E-LEARNING READING BOOKS , GO THOUGH THE DIFFERENT WEB SITES IN ORDER TO UPDATE OUR KNOWLEDGE TO TACKLE THE SITUATION OF OUR CLIENTS AND ALL REGULATORY ( IES ) .
If you can implement it will serve better /most.
CA.Subash Chandra Podder
03/03/2011.