Acknowledging the worldwide scope of cyber threats, the panel emphasized the significance of fostering supervisory cooperation and knowledge exchange with international regulators.
Taking a significant step towards strengthening India’s cybersecurity infrastructure, the Parliamentary Standing Committee on Finance, led by BJP’s Jayant Sinha, has introduced a series of recommendations aimed at safeguarding the nation’s critical IT infrastructure and networks from the escalating wave of cyber threats. At the core of these proposals is the establishment of a centralized and comprehensive regulatory authority dedicated solely to cybersecurity.
The proposed regulatory authority would play a crucial role in formulating and implementing robust cybersecurity policies, guidelines, and best practices. By collaborating with state governments and private sector entities, this authority seeks to adopt a collective approach in developing effective cybersecurity strategies to better defend against cybercrime and unlawful practices.
In response to the challenges posed by the digital lending sector, the committee proposes the creation of a white listing framework for Digital Lending Agencies (DLAs) and other financial intermediaries. This measure aims to combat fraudulent activities and foster a standardized code of conduct within the digital lending industry, creating a more secure and trustworthy environment for consumers.
To strengthen fraud prevention and detection in the banking sector, the panel suggests the establishment of a Central Negative Registry. This registry would consolidate critical information on fraudulent accounts and misused official documents, empowering financial institutions with valuable insights to prevent future fraud attempts.
In order to offer greater protection to consumers, the committee calls for the implementation of an automatic compensation system, similar to the Reserve Bank of India’s (RBI) model. This system would place the responsibility on financial institutions to promptly compensate affected customers while further investigation and fund traceability are underway. Such a measure aims to alleviate the burdens faced by innocent customers who fall victim to cyber fraud.
Recognizing the global nature of cyber threats, the panel emphasizes the importance of promoting supervisory cooperation and knowledge exchange with international regulators. By fostering collaboration and learning from global best practices, India can enhance its capacity to respond collectively to the ever-evolving cyber landscape. As part of this effort, the government is encouraged to develop “next practices” tailored to India’s specific needs and requirements, aligning the nation’s cybersecurity approach with its unique challenges.
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