Cyber crime forces RBI to scout for IT wing

Bad loan issues worrying, says RBI chief

GN Bureau | May 15, 2015


#rbi   #RBI   #cyber crime  

To combat ever increasing issues relating to cyber crime the Reserve Bank of India (RBI) is likely to set up an information technology wing.
 
"We've to worry about increasing issues.. about cyber-security, we've to worry about cyber supervision and with that in mind, the board suggested that we focus on an IT subsidiary which would help us develop policies as well as capabilities in the areas of IT," Governor Raghuram Rajan said in Benaulim, Goa.
 
The cyber security was discussed at the central board meeting of the monetary authority in Goa, which was attended by the governor.
 
Rajan said the central board talked about the changing nature of information technology and the need for monetary authority to keep abreast of it.
 
"The changes are so rapid that one of the directors said today we have banking which uses IT today, tomorrow it's going to become an IT company which does banking," he said.
 
It will  focus on issues concerning systems such as cyber-security, supervising the nature of technical capabilities of our banks, the new payment banks which are going to be IT-intensive as well as the small finance banks.
 
Meanwhile , raising concern over rising bad loans at some banks, Rajan said there was no danger of any financial crisis but it may be early to declare that the worst was over on the NPA front.
 
"I would not be prepared to make that statement today only because you see a variety of problems across banks. Some banks have managed to bring down their bad loan positions, for others it is still increasing," Rajan said.
 
He was replying to a query on whether the worst was over with regard to Non-Performing Assets (NPAs) in the banking system.
 
"I would be more confident when there will be a uniform sort of series of results across the banks," Rajan told reporters after a central board meeting of the RBI here.
 
He, however, sought to undermine the concerns, saying, "if the question is whether are we in the danger of a financial crisis? The answer is no!"
 
He further said that he is more worried about the losses to taxpayers and the effects on banks' functioning due to their rising bad loan levels.
 
A recent International Monetary Fund report said the domestic banking sector was in trouble with a whopping 36.9% of the country's total debt being at risk, which is among the highest in emerging economies.

Comments

 

Other News

‘Thank You, Gandhi’ is fiction, non-fiction, memoir, social commentary and more

Thank You, Gandhi By Krishna Kumar Viking/Penguin, 224 Pages, Rs 599.00 “Will Gandhi’s idea of truth help me cope with the pain and stress I suffer each day as a witness to relentless defacing of the India I grew up in? I am not used to se

Mobile coverage has expanded to include 6.22 lakh villages

Out of 6,44,131 villages in the country (as per the Registrar General of India), around 6,22,840 villages have mobile coverage and out of these, 6,14,564 villages are covered with 4G mobile connectivity as on 30.09.2024. Under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) Mis

Community-driven tourism for a sustainable India

Tourism is a vital pillar of economic growth and employment generation all across the world. It offers vast potential for sustainable livelihoods while promoting India’s rich cultural and natural heritage. According to the World Travel & Tourism Council (WTTC), tourism`s contribution to India&rsq

Autumn in Delhi is a sight to behold – grey air or no grey air

Delhi: A Nature Journal By Anuradha Kumar-Jain, with Illustrations by Bahaar Meera Jain Rupa Publications, 240 pages, Rs 695

The overlooked link: climate policy and public health

Returning from a recent Renewable Energy (RE) meeting of the World Meteorological Organisation (WMO), UN in Germany, I was struck by the news of Delhi’s record-high AQI levels forcing partial closures across NCR. This alarming situation begs the question: Is our health sector climate-resilient enough

Exploring the treasures of India arts is a treat with this guide

The Big Book of Indian Art: An Illustrated History of Indian Art from Its Origins to the Present Day By Bina Sarkar Ellias Aleph Book Company, 815 pages, Rs 2,499

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter