RBI has asked banks to invest adequately in IT infrastructure according to their business growth and volume to reduce outages. RBI Governor Shaktikanta Das said this in a press conference on Friday after the meeting of the Monetary Policy Committee (MPC) of the Reserve Bank of India.
Shaktikanta Das said, ‘Whenever there is a technical interruption, the problem is not in NPCI and UPI, but there are problems with the banks. There are many reasons for this, which we are dealing with.’
RBI had imposed a ban on Kotak Mahindra Bank
Recently, RBI had banned Kotak Mahindra Bank from adding new customers and issuing new credit cards through mobile banking channels. Citing supervisory concerns over its technology platform.
RBI has imposed these restrictions on Kotak Bank to prevent any possible long-term interruption. Interruptions can have a serious impact not only on the bank’s ability, but also on the financial ecosystem of digital banking and payment systems.
RBI: ICICI Bank increased spending on IT and cyber security
Recently ICICI Bank has announced that it has increased its spending on information technology and cyber security to a great extent. The bank has increased it from 5.6% of total operating expenses in 2019 to 9.4% in FY 2023-24. ICICI Bank has faced many incidents of outage in the recent past.
IT resilience and customer security are most important for us
After announcing the fourth quarter results, ICICI Bank Executive Director Sandeep Batra said on customer security. He said, ‘IT resilience and customer security are most important for us and it is not a budget constraint.’
We have the ability to take quick recovery and corrective actions
Sandeep Batra said, ‘This is an ongoing effort and there can be interruptions and flaws in any bank. We have the ability to take quick recovery and corrective actions and we will focus on improving our capabilities.’ “Whenever we need to spend money, which has never been a constraint, we will stay focused,” he said.
