Governor of the Reserve Bank of India Shaktikanta Das urged banks and other financial institutions to strengthen their IT and cyber security systems in response to a global Microsoft outage.
In response to a worldwide Microsoft outage that caused disruptions in a variety of industries, including travel and finance, Reserve Bank of India Governor Shaktikanta Das on Thursday urged banks and other financial institutions to fortify their IT and cyber security systems. Das went on to say that instances such as these underscore the excessive reliance on big tech.
Das also mentioned that these kinds of solutions draw attention to the over-reliance on big-name technicians and outside suppliers of technological solutions. “There was an unprecedented IT outage globally, which affected businesses in many countries,” Das stated. The outage showed how a small technical modification gone wrong can have catastrophic global effects. It also demonstrated the rapidly increasing reliance on big-tech companies and outside suppliers of technology solutions. Given this context, in order to preserve operational resilience, banks and other financial institutions must incorporate suitable risk management frameworks into their IT, cyber security, and third-party outsourcing agreements. In order to handle such situations, the Reserve Bank has repeatedly emphasized the significance of having strong business continuity plans (BCP).
Based on data from the RBI, the number of security incidents that India’s Computer Emergency Response Team (CERT-In) responded to between January and October 2023 jumped from 53,117 in 2017 to 13,20,106. In India, almost 80% of security issues are caused by unauthorized network scanning, probing, and vulnerable services. According to data from the RBI report on currency and finance, the cost of cybercrime is predicted to increase from USD 8.15 trillion in 2023 to USD 13.82 lakh crore globally by 2028. Additionally, the average cost of a data breach increased by 15% over the course of three years to US$ 4.45 million in 2023.
Since 2020, the majority of central banks have raised their investment budgets for cyber security by 5% in recognition of the substantial expenses involved. Although it is smaller than the average cost of data breaches worldwide, India’s average cost of data breaches in 2023 will be US$ 2.18 million, a 28% rise from 2020. Phishing assaults account for 22% of all events in India, making them the most common type of attack. Stollen or compromised credentials come in second at 16%. The global Microsoft outage had little effect on India’s financial sector, according to a July 19 statement from the RBI. According to an evaluation conducted by the regulatory body, a mere ten banks and non-banking financial organizations (NBFCs) experienced slight disturbances.
“The critical systems of most banks are not in the cloud, and furthermore, only a few banks are using the CrowdStrike tool,” the central bank stated. Worldwide institutions, businesses, and airlines have experienced disruptions due to a broad Microsoft outage. Users’ PCs would restart or shut down when they saw the Blue Screen of Death error messages due to the issue. The central bank had questioned banks about the regular operation of their customer-facing channels, such as branches, ATMs, mobile banking, and online banking, following a worldwide tech outage caused by technical issues at Microsoft and its partner, US cyber security company Crowdstrike.
Also read: Achieving Rapid Outcomes with AI-Driven Cloud Analytics
Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter
About us:
CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.
CIO News is a proprietary of Mercadeo Multiventures Pvt Ltd.
