Critical issues in India's digital lending ecosystem were identified by a RBI working group. These include the existence of fake and illegal apps and unscrupulous money recovery practices. Establishment of a self-regulatory body to oversee operations of lending platforms is recommended.
Now that the RBI has issued guidance on how payment system operators must manage risks associated with third-party relationships to help prevent fraud, security experts say that the regulator needs to promote compliance among outsourcers and hold them accountable for fraud prevention.
Often traditional compliance processes in place in the organisation cannot scale up to growing requirements and complexities. As a result, too much time is wasted on after-the-fact mitigation on audit findings. In a fast-paced environment, organisations would like to break free from reactive and manual solutions and...
Global messaging app WhatsApp's instant payment service went live in India on Dec.16. But despite its two-factor authentication being accepted by leading banks, there are concerns about potential security issues.
India's urban cooperative banks need to take a holistic approach to build a security governance structure, opt for an ASP services model and map their business-critical risks to comply with the RBI's security posture guidelines, according to a panel of experts.
Payments companies must secure their APIs and enhance their authentication standards in line with The Reserve Bank of India's guidelines to make QR codes interoperable and boost the electronic payments ecosystem.
The Reserve Bank of India's "New Umbrella Entity" initiative, designed to support a digital retail payments system similar to National Payments Corp. of India, would be a game-changer to boost digital innovation in the payments industry, according to a panel of experts.
To help ensure security as India moves to digital payments, enterprises need to educate their customers to help them understand potential risks and take the right precautions, says payments expert Navin Surya.
The Reserve Bank of India's draft of a framework for new self-regulatory organizations, including one that would help oversee payment system operators, fails to adequately address security issues, some observers say.
The need for enhanced business agility and secure remote access to support digital transformation has led to the adoption of the security access service edge, or SASE, model, says Rajpreet Kaur, senior principal analyst at Gartner.
Organizations that have shifted to a remote workforce as a result of the COVID-19 pandemic should help in the battle against cybercrime by reporting all security incidents to law enforcement officials for investigation, says Brijesh Singh, inspector general of police, the government of Maharashtra.
Organizations in India need to ramp up their authentication efforts in light of a 40% increase in cashless transactions since the start of the COVID-19 pandemic, which has led to increases in attempted fraud, security experts say.
The Reserve Bank of India's plans to create a self-regulatory organization by April to help oversee the digital payments system could help reduce the complexity of RBI's efforts to help ensure payments security, some security experts say.
The Reserve Bank of India has decided to allow all banks to use remote video-based "know your customer" authentication for onboarding new clients. But some observers say many Indian banks may prove reluctant to use video KYC because they lack the necessary technology and new customers lack smartphones.