Digitalization is the rise of the digital transaction where bank, customers, merchants, industries and other stakeholders form an interdependent financial system network. Digitization is not an option for banking industry, rather it is inevitable, because every industry is being digitized and banking sector is no exception.

Factors influencing the digitalisation in banking:

1. Changing consumer behaviour in favour of digitalization.
2. Financial Inclusion and government initiatives.
3. Leveraging increased smartphone usage and mobile penetration.

A Less-cash Economy is an economy in which many of the transactions are carried out through digital means. It includes various modes such as internet banking, mobile banking, debit and credit cards, card-swipe or Point of Sales (POS) machines, Unified Payments QR Code (Quick Response) based transactions, Touch-n-Go cards.

BHIM UPI – Bharat Interface for Money — Unified Payments Interface:

BHIM UPI is a revolutionary payment system introduced in India which is a first of its kind across the globe.

BHIM Aadhaar is a digital payment acceptance solution enabling merchants to receive digital payments from customers over the counter through Aadhaar authentication.

Measures taken by the Government of India to strengthen the Cyber Security in the complete digital eco-system:

1. National Cyber Security Policy, 2013 (NCSP)

• It was released as a formalized step towards cyber security by the Ministry of Communication and Information Technology under Department of Electronics and Information Technology.
• Its mission is to protect cyberspace information and infrastructure, build capabilities to prevent and respond to cyber-attacks, and minimise damages through coordinated efforts of institutional structures, people, processes, and technology.
• National Computer Emergency Response Team (CERT-in) functions as the nodal agency for coordination of all cyber security efforts, emergency responses, and crisis management.

 Cyber Swachhta Kendra (Botnet Cleaning and Malware Analysis Centre)

• To combat cybersecurity violations and prevent their increase (CERT- in) in February 2017 launched ‘Cyber Swachhta Kendra’ (Botnet Cleaning and Malware Analysis Centre). The centre has designed new desktop and mobile security solutions for cyber security.
• The Cyber Swachhta Kendra is a step in the direction of creating a secure cyber ecosystem in the country as envisaged under the National Cyber Security Policy in India.

Security and protective tools offered by the centre:

1. USB Pratirodh : aimed at controlling the unauthorised usage of removable USB storage media devices like pen drives, external hard drives and USB supported mass storage devices.
2. Samvid App: It is a desktop based Application Whitelisting Solution for Windows Operating System. It allows only pre-approved set of executable files for execution and protects desktops from suspicious applications from running.

• M-Kavach: a device for security of Android mobile devices. It provides protection against issues related to malware that steal personal data and credentials, misuse Wi- Fi and Bluetooth resources, or stolen mobile device.

1. Browser JSGuard: is a tool which serves as a browser extension which detects and defends malicious HTML and JavaScript attacks made through the web browser based on Heuristics. It alerts the user when he visits malicious web pages and provides a detailed analysis threat report of the web page.

3. Information Technology Act:

IT Act, 2000 is the primary law in India dealing with cybercrime and electronic commerce which had subsequent amendment in the year 2008.

 IT Act describes the following:

• Digital and Electronic Signature
• Electronic Governance.
• Attribution, Acknowledgement Despatch of Electronic Records.
• Secure Electronic Records and Secure Digital Signatures.
• Regulation of Certifying Authorities.
• Electronic Signature Certificates.

4. Online Frauds and IT Act:

 IT act has detailed the various cybercrimes and also specified the penalty for the cyber wrong doings by fraudsters online. Phishing is the most common banking fraud which happens online

5. Phishing

Phishing is a type of social engineering attack often used to steal user data, including login credentials and credit card numbers. It occurs when an attacker, masquerading as a trusted entity, dupes a victim into opening an email, instant message, or text message.

 The following Sections of the Information Technology Act, 2000 are applicable to the Phishing fraud:

• Hacking with Computer
• Receiving stolen computer or communication device
• Using password of another person
• Cheating using computer resource

6. Credit Card Fraud

Credit Card Fraud is another online banking fraud where a customer’s card is spoofed and the same is used online. In this fraud also IT Act and IPC rescues the victim and assures penalty from the fraudster.

RBI Directions

• RBI has given directions to protect interests of the customer in its circular on Customer Protection — Limiting Liability of Customers in Unauthorised Electronic Banking Transactions.
• It has thrust upon ‘Zero Liability’ and ‘Limited Liability’ for bank customers against any fraud provided if’ the same is reported to the bank immediately.
• RBI has made it mandatory for banks to register all customers for text message alerts and permit reporting of unauthorised transactions through a reply to the alert message.

However, in cases where the loss is due to negligence of the customer, he/she shall have to hear the entire loss until he/she reports the unauthorized transaction to the bank.

The cyber security infrastructure is to be continuously upgraded, as new threats emerge. Security is a journey, awareness will enable to face and mitigate the risk.