Cyber risks in banking industry

BFIs should be more vigilant: NBA

Published On: August 18, 2016 01:40 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Aug 18: Bankers have said that bank and financial institutions (BFIs) should be more vigilant as banking industry has seen a rise in cyber crimes in recent years.

Addressing an interaction on 'Cyber Risk and Security', organized by Nepal Bankers' Association, in Kathmandu on Tuesday, Upendra Poudyal, president of Nepal Bankers' Association (NBA), said that the banking industry has seen a rise in cyber crimes. "Cyber risk and cyber crime is something that touches each one of us," he said, explaining three categories of activities that financial sector must prepare against cyber crime -- baseline protections, information sharing and response and recovery. "The central bank has a key role to play on the subject matter and a close cooperation between the central bank, law enforcement agencies and banking industry is required."

He also thanked KPMG-India for taking the initiative to share their expertise and knowledge on such an important issue.

Likewise, Kunal Pande, Partner-KPMG India, conducted a session on 'Cyber Risk: Key Business Risk' which was followed by another session from Atul Gupta, Partner-KPMG India on 'Cyber Risk Exposure: Change in Traditional Approach'.

A panel discussion was then hosted covering the areas related to 'Global Trends and Learning for Multiple Stakeholders in Driving Cyber Agenda' which was moderated by Atul Gupta. Rabin Basnyat, Superintendent of Police, Nepal Police; Ananda Raj Khanal, Director, Nepal Telecommunications Authority; Ajit Regmi, Deputy Director, Nepal Rastra Bank; Joseph Silvanus, Chief Executive Officer, Standard Chartered Bank Nepal Ltd; and Prabin Chhetri, Chief Operating Officer, Bank of Kathmandu Lumbini Ltd were the panelist in the discussion.

Speaking on the occasion, Basnyat said that there has not enough reporting from BFIs on electric frauds and crimes“ "BFIs should have clear understanding on when to engage the security agencie”," he added.

Similarly, Khanal mentioned that the program like this would help to create better understanding on the subject matter amongst the stakeholders.

He also said that they were formulating Cyber Security Policy as per the international practice. They policy, according to Khanal, will address the cyber crimes and ways to raise awareness.

Regmi, on the occasion, said that considering the importance of cyber-related matters, the central bank has a dedicated department looking after licensing and regulating e-payment systems.

At the concluding ceremony, NRB Governor Chiranjivi Nepal delivered his key note speech, mentioning that financial sector is more vulnerable due to the rise in cyber crimes. He also said all stakeholders must work together to mitigate such risks. "The central bank is aware of the issues relating to cyber crime and is ready to offer all the necessary support and assistance to BFIs in Nepal," he added.

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