Bangalore: Latest RBI guidelines on banks' technology governance, information security, audit, outsourcing and cyber fraud could open up a $300-million opportunity for IT vendors and audit firms. The central bank recently directed IT governance frameworks, data leakage prevention, encryption, multi-factor authentication and digital asset archiving mechanisms for banks. The RBI working group's April 29 recommendations on information security and electronic banking will spur investments in software products, consulting, system integration and IT services. Market-watchers said the guidelines liberalise vendor qualification criteria in some respects, lowering entry barriers for tier II and maybe even tier III players into public sector banks. While estimates on actual banking spending vary, experts said the rules, to be implemented in a year, could boost a bank's technology spending in the near term by approximately 30%. For IT services firms, the RBI mandate presents opportunities in IT strategy, information security, business continuity, disaster recovery, and information security audit, Ramanath L Ram, vice president of India and Middle East Consulting at Wipro Infotech noted. “Some guidelines that were issued earlier will also be used along with the new ones. Since RBI has come up with a specific time frame of one year, more banks are expected to go for implementation or would be looking to speed up existing initiatives,” he said.
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