New Delhi: The Reserve Bank of India (RBI) has fined a penalty of Rs 65 lakh on AP Mahesh Co-operative Urban Bank Ltd for its failure to cybersecurity framework provisions. The penalty comes because of an extensive cyber audit conducted by the RBI and an investigation carried out by the Hyderabad city police, which revealed significant security lapses in the bank's systems. These lapses allowed hackers to breach the bank's defences and illegally transfer Rs 12.48 crore.
The RBI's investigation found that AP Mahesh Co-operative Bank had not implemented adequate security measures, including a robust password policy, two-factor authentication, and regular security audits. Furthermore, the bank had neglected to provide sufficient training to its employees regarding cybersecurity.
This penalty serves as a stern reminder to all banks to prioritize cybersecurity. In recent years, several high-profile cyber-attacks targeting banks have resulted in substantial financial losses. It is imperative for banks to establish comprehensive security measures to safeguard customer data and prevent fraudulent activities.
Also read: Science: The Future of Space Exploration and Colonization
Key findings from the RBI's investigation include:
The RBI has warned the bank that failure to comply with these directives will result in further action being taken against them.
Also read: Sports and Fitness: Benefits of Yoga for Athletes
This penalty levied by the RBI serves as a strong deterrent to other banks that may have lax cybersecurity practices. It also serves as a reminder to all businesses about the critical importance of prioritizing cybersecurity to safeguard sensitive data and prevent fraudulent activities.
