Some regulatory initiatives in the area of climate risk and sustainable finance would also help the REs to better handle climate risk and guide them in the transition period
The RBI is planning to set up a committee to examine and review the state of customer service in the REs and adequacy of customer service regulations and suggest measure to improve the same
RBI has prescribed the necessary security controls for digital payment products and services offered by banks and credit card issuing NBFCs. It is proposed to issue similar directions for Payment System Operators (PSOs), covering robust governance mechanism for identification, assessment, monitoring and management of cybersecurity risks
Mumbai:
Climate change may result in physical and transition risks that could have implications for the safety and soundness of individual regulated entities (REs) as well as financial stability, said the Reserve Bank of India on Friday
Thus, there is a need for REs to develop and implement a sound process for understanding and assessing the potential impact of climate-related financial risks in their business strategy and operations. This would require, among other things, an appropriate governance structure and a strategic framework to effectively manage and address these risks, said the RBI in its Monetary Policy Statement.
Further, some regulatory initiatives in the area of climate risk and sustainable finance would also help the REs to better handle climate risk and guide them in the transition period. A discussion paper on climate risk and sustainable finance covering the above aspects will be placed shortly on the RBI’s website for comments of stakeholders.
Cyber Resilience and Payment Security Controls of Payment System Operators (PSOs)
With payment systems play a catalytic role in promoting financial stability and facilitating financial inclusion, maintaining the safety and security of these systems is a key objective of the RBI.
With greater adoption of digital payment modes, it is important to ensure that payment system infrastructures are not only efficient and effective but also resilient to conventional and emerging risks, specifically those relating to cyber security, explaining the banking regulator.
RBI has prescribed the necessary security controls for digital payment products and services offered by banks and credit card issuing NBFCs. It is proposed to issue similar directions for Payment System Operators (PSOs), covering robust governance mechanism for identification, assessment, monitoring and management of cybersecurity risks including information security risks and vulnerabilities, and specify baseline security measures for ensuring safe and secure digital payment transactions.
The directions will be issued shortly, said the RBI.
Committee for Review of Customer Service Standards in RBI Regulated Entities
The RBI is planning to set up a committee to examine and review the state of customer service in the REs and adequacy of customer service regulations and suggest measure to improve the same
The financial landscape is undergoing a revolutionary transformation consequent to the rising customer base of the banks, advent of digital products, technology platforms and service providers as also the rising volumes of digital transactions emerging from innovations in payment systems, said the RBI. .
Interoperable Card-less Cash Withdrawal (ICCW) at ATMs
Card-less cash withdrawal through ATMs is a permitted mode of transaction offered by a few banks in the country on an on-us basis (for their customers at their own ATMs).
The absence of need for a card to initiate cash withdrawal transactions would help in containing frauds like skimming, card cloning, device tampering, etc, said RBI.
To encourage card-less cash withdrawal facility across all banks and all ATM networks / operators, it is proposed to enable customer authorisation through the use of Unified Payments Interface (UPI) while settlement of such transactions would happen through the ATM networks, added RBI.
Separate instructions would be issued to NPCI, ATM networks and banks shortly, said RBI.