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New Executive Director responsible for the IT, payment and settlement systems and foreign exchange department discusses challenges of online and telephone banking |
At the Annual Conference on Secure Banking in Mumbai on Friday, G Padmanabhan, who became Executive Director of the IT, Payment and Settlement Systems and Foreign Exchange Departments at the Reserve Bank of India this month, spoke about online banking. "In the IT-enabled banking environment, it has to be recognised that fraud possibilities have assumed international dimensions," he said of the growing security fears. "Ranging from password hacking, card copying [and] cloning to data and identity theft at various levels of transaction, information storage as well as the transmission stage, managing security is more challenging in online and phone banking as compared to other delivery channels," he said. Padmanabhan warned of innovative methods of hacking and stealing coming to the fore regularly and warned that "the industry has to take prompt action to safeguard business and customer interest". He mentioned the reserve bank's new system of alerts for all card transactions. "Such a system will surely help in containing frauds," he said, and urged banks to make the system effective by "ensuring that the customers are persuaded to register their mobile phone numbers for receiving the alerts".
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