Bhubaneswar: Even as financial sector remains susceptible to cyber threats, and when IMF's 2024 Global Financial Stability report revealed that cyberattacks have resulted in extreme financial losses, which have increased fourfold since 2017, amounting to USD 2.5 billion, the Economic Survey tabled in Parliament recently allays the cyber fraud threat fears in India.
The Survey highlighted that Indian banking system cyber security is very resilient and cyber attackers cannot breach it.
“India's Tier 1 ranking in the Global Cybersecurity Index (GCI) 2024, with a commendable score of 98.49 out of 100, signifies a significant milestone in its cybersecurity journey,” the Survey noted.
It further explained what the high ranking means in the realm of cyber security.
- This recognition places India among the world's 'role-model' nations in cybersecurity.
- The GCI evaluates national efforts across five pillars—legal, technical, organisational, capacity building, and cooperation.
The Survey noted that India has strengthened its cybersecurity ecosystem through
- Robust legal frameworks,
- Targeted education programs,
- International collaborations.
“By promoting awareness, skill development, and research, the country effectively addresses current cyber threats while preparing for emerging challenges, reaffirming its leadership in securing digital infrastructure, “ the Survey underlined.
MAKING INDIA IMMUNE TO CYBER FRAUDS
- Financial Stability Development Council (FSDC) has been formed as the apex body for addressing high-level policy issues and fostering inter-regulatory coordination among key financial sector regulators.
- The FSDC facilitates inter-regulatory coordination, financial sector development and the maintenance of financial stability.
- In view of the increasing digitalisation of the financial sector, FSDC has been focusing on cyber security issues as strengthening the cyber resilience of the financial sector is key to maintaining financial stability.
RBI MAKING INDIA CYBER FRAUD FREE
As per the Survey, the RBI, in collaboration with sectoral regulators like Insurance Regulatory and Development Authority of India and PFRDA, oversees the cybersecurity preparedness of the financial sector through regular IT examinations and monitoring of compliance with established guidelines.
The primary focus is on the regulations issued by the RBI, emphasising essential elements, including governance, technology risk management, IT services management, cybersecurity operations, business continuity, response and recovery, vulnerability assessments, and third-party risk management. T
his framework has fortified cybersecurity risk management and supervision across financial institutions in India, the report pointed out.
INDIA SETS CYBER SECURITY STANDARDS
As per the Survey, the Indian banking sector benefits from a comprehensive and modern regulatory structure for cybersecurity, guided by both international and national standards.
- India’s cyber security framework is anchored by well-recognised international references, such as
- ISO 27001 for Information Security Management Systems
- NIST Cybersecurity Framework
- CPMI-IOSCO Cyber Guidance for Financial Market Infrastructures (FMIs).
RBI LATEST IMPROVEMENTS
According to the Economic Survey report, “the RBI has recently introduced regulations on the oversight of IT outsourcing, including cloud services, as well as standards for the cyber resilience of digital payments. This comprehensive approach ensures that cybersecurity measures align with global best practices while addressing the unique challenges of India's financial ecosystem.”
INDIA’S CYBER RESILIENCE
The Survey reported underlined the following responsible for India’s cyber resilience.
- Presence of robust frameworks for cybercrime laws and cybersecurity standards.
- Country's legal institutions are well-equipped to tackle cybersecurity challenges and combat cybercrime, ensuring the protection of its digital infrastructure.
- Sectoral Computer Incident Response Teams (CSIRTs) provide sector-specific technical support and incident reporting, further bolstering the country’s cybersecurity capabilities.
- Education and awareness are central to India's cybersecurity strategy.
- The integration of cybersecurity into primary and secondary education curricula underscores the country’s commitment to cultivating a knowledgeable and well-prepared digital citizenry.
All the above has made India a global leader in cybersecurity. India’s ascension to Tier 1 in the GCI 2024 clearly indicates the nation’s enhanced cybersecurity commitments. This achievement reflects the government's dedication to securing its digital domain and sets a benchmark for other countries, the Survey noted.
