Cyber Crimes in Banking Sector in India: A Critical Analysis

Abstract

As we are well aware that the Indian Banking industry is old and it is very fact that that any changes are brought in this industry since liberalization only. The Indian banking system is well regulated and supervised, it involves moral practice, financial distress and company governance. It is regulated and well supervised by the Central Bank of the country i.e., Reserve Bank of India. It is undeniable fact that with the advancements in technology, the Indian Banking Sector has been at par with the emerging trends and significant changes required in its operations. The rapid growth in technology has given the banking sectors an immense opportunity and as a result, banks are now among the biggest beneficiaries of the Information Technology Revolution. The proliferation in online transactions mounting on technologies like NEFT (National Electronic Fund Transfer). RTGS (Real-Time Gross Settlement), ECS (Electronic Clearing Service) and mobile transactions is a glimpse of the deep-rooted technology in banking and financial matters. The Reserve Bank of India is peeping into the legal compliance of online banking to guarantee monetary dependability. On the other hand, security threats play a predominant role in the Internet banking. As technology develops, the cybercrimes endanger in the virtual world, people and organizations become the prey at an alarming rate as solely depending on web. Usage of internet and other technologies have enhanced the risk of attacks from cyber criminals across the globe and the banking transactions is also adversely affected. With the sharp rise of cybercrimes, banking sector is the hub in the occurrences of theft, phishing, PC infections, hacking and so on. With these backgrounds this paper aims to examine the technical aspects of various types cyber crimes concerning the banking sectors in India and it also provides certain valuable suggestions to curb down the cyber crimes in banking sectors in India.