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Source: The post is based on the article “House panel for DGCA-like authority for cybersecurity” published in Business Standard on 28th July 2023.
What is the News?
The Standing Committee on Finance has given several recommendations on cybersecurity and other issues.
What are the issues highlighted by the Standing Committee on Finance?
According to the Indian Computer Emergency Response Team (CERT-In), more than 13 million cybersecurity incidents were tracked in 2022 alone.
As per the Union Home Ministry, the volume of financial crimes reported increased from 2.62 lakhs in the financial year 2020-21 to 6.94 lakhs in 2022.
As per Indian Cyber Crime Coordination Centre, out of 6.9 lakhs complaints related to financial frauds in 2022, an FIR was issued only in 2.6% of the cases.
There is a major disparity in the cyber-resilience of commercial banks, cooperative banks and non-banking financial institutions. While all commercial banks have completed cyber security related audits, only a small percentage of cooperative banks, approximately 10.92 per cent – 206 out of 1886 entities – have undertaken such audits.
What are the recommendations given by the Standing Committee on Finance?
Firstly, Establish a centralized and empowered Cyber protection authority(CPA) similar to the Directorate General of Civil Aviation (DGCA) to tackle the rising instances of white-collar crimes in cyberspace.
– One of the tasks of the CPA should be to create and maintain a Central Negative Registry, which would include information on fraudsters’ accounts and the official documents they have utilized.
Secondly, the Centre should mandate Apple and Google to share “exhaustive” metadata, developer identities, and ownership and origin of apps they host on their respective app stores to curb financial fraud.
– The committee said that sharing such information with the government will empower regulators to conduct in-depth analysis, identify potential security vulnerabilities and institute appropriate measures to fortify the digital landscape.
Thirdly, create a whitelisting framework for Digital Lending Agencies (DLAs) and other financial intermediaries.
– This measure is intended to combat fraudulent activities and promote a standardized code of conduct within the digital lending industry, thus fostering a more secure and trustworthy environment for consumers.
