RBI Brings ‘GUARD’ For Urban Cooperative Banks – Free PDF Download

What happened?

• The Reserve Bank last month came out with a 5-pillared strategic approach ‘GUARD’
• To deal with cybersecurity threats being faced by urban cooperative banks (UCBs).

Why?

• The number, frequency and impact of cyber incidents and attacks have increased manifold in the recent past, more so in the case of the financial sector, including UCBs,
• RBI said in its document ‘Technology Vision for Cyber Security for Urban Cooperative Banks 2020-2023’.

• It has, therefore, become essential to enhance the security posture of UCBs, To prevent, detect, respond to and recover from cyber-attacks, the central bank said.

GUARD

• The five-pillared strategic approach ‘GUARD’ comprises-

1. Governance Oversight,
2. Utile Technology Investment,
3. Appropriate Regulation and Supervision,
4. Robust Collaboration and
5. Developing necessary IT and cybersecurity skills set.

• The technology vision document was formalised after obtaining inputs from various stakeholders

Guiding principles

• Considering the heterogeneity of the UCB sector in terms of size, regions, financial health and digital depth,
• It was recognised that a ‘one size fits all’ approach may not be suitable while prescribing cyber security guidelines for UCBs.
• In view of the same, formulation of cyber security controls for UCBs came to be guided by the following principles:
• A differentiated tier-wise approach will be followed while prescribing cyber security controls for UCBs.
• The tiers would be decided based on risk exposure in terms of the digital services offered by the UCBs.
• The approach will ensure that the UCBs with high IT penetration/ and offering all payment services are brought at par with other banks having mature cyber security infrastructure and practices.
• Considering that implementation of cyber security framework would be a cost intensive process,
• The responsibility for implementation, monitoring, compliance and response would have to be assigned from the Board level and percolate down till the end user.

Commercial bank Vs Cooperative bank

Q) Which of the following statements regarding co-operative societies are correct?

1. Only Parliament may make provisions for the incorporation and regulation of co-operative societies.
2. Co-operative societies is mentioned in the Constitution of India.
3. The maximum number of directors of a co-operative society shall not exceed 25.
4. 1 & 2 only
5. 2 only
6. 1 & 3 only
7. 2 & 3 only

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