Nepal | May 25, 2020

NRB to make BFIs spend certain share of profit on IT security

Himalayan News Service
Share Now:

Kathmandu, September 19

Nepal Rastra Bank (NRB) is preparing to make it compulsory for banks and financial institutions (BFIs) to invest a certain percentage of their profit on information and technology (IT) security.

Citing that BFIs are reluctant to allocate the required budget to upgrade their IT security, NRB Governor Chiranjibi Nepal said that the central bank is planning to introduce a directive soon to make banks allocate a certain percentage of their profits to upgrade and standardise their IT security.

“Investing in IT security ultimately enhances the profit of BFIs in the long run. However, at present the BFIs have been taking the issue of IT security too lightly,” said Nepal while addressing the Cyber Financial Fraud Conference, organised by National Banking Institute (NBI) in the Capital today.

Citing that rising security risks in the banking sector is also one of the reasons behind instability of the financial sector, Nepal said that BFIs should not hesitate to invest in IT security. “Banks have been safeguarding billions of rupees of the public. Thus, they should not compromise on taking effective measures to safeguard people’s money,” he added.

As per the governor, new technologies are being developed and upgraded every month and BFIs should upgrade their IT security accordingly.

NRB has been tightening IT security provisions at BFIs especially after a recent heist in the banking system conducted by Chinese hackers, where they were able to withdraw millions of rupees through ATMs of different banks through malware attack.

On September 10, the central bank had issued a directive directing BFIs to regularly audit their IT system and promptly address the IT and security flaws that are detected. Similarly, NRB had also directed BFIs to adopt best international practices in the IT and security system at their respective organisations.

NRB had also directed BFIs to standardise technologies related to perimeter defence, access control, encryption, anti-virus and firewall, among others, to cope with possible risks of cyber attack, malware virus and ransomware at BFIs’ websites, mobile applications, authenticated social networks and entire IT system.

“Neglecting IT security risks today will prove to be a major nuisance for the BFIs in the future — a fact that they are well aware of. The central bank will ensure necessary facilitation to BFIs in maintaining proper IT security status,” said Nepal.

A version of this article appears in print on September 20, 2019 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

19 new cases confirmed on Sunday, nationwide COVID-19 count reaches 603

KATHMANDU: Nineteen new cases of COVID-19 have been confirmed by the Ministry of Health and Population, today, taking the nationwide tally to 603. The infections were confirmed through tests carried out at Provincial Public Health Laboratory, Biratnagar, Provincial Public Health Laboratory, Bhair Read More...

NKorea's Kim vows to further bolster nuclear war deterrence: KCNA

SEOUL: North Korean leader Kim Jong Un hosted a military meeting to discuss new policies to bolster the country's nuclear capabilities amid stalled denuclearisation talks with the United States, state media KCNA said on Sunday. The meeting of the ruling Workers' Party's powerful Central Milit Read More...

COVID-19 positive flees Janakpur Provincial Hospital

JANAKPURDHAM: A COVID-19 positive person fled the Temporary Coronavirus Special Unit of the Provincial Hospital, Janakpurdham in Dhanusha district on Saturday night. The 45-year-old person housed in a single room of the isolation ward fled the hospital by breaking the room's window, informed Kuld Read More...

NAC's fourth chartered flight to Japan scheduled for tonight

KATHMANDU: Nepal Airlines Corporation (NAC) is operating its fourth chartered flight to Japan to send back Japanese nationals stranded in Nepal and other Nepali passengers, tonight. The flight chartered by the Japanese Embassy in Kathmandu is scheduled to take off at 9:00 pm. The NA’s wide b Read More...

Vatican Museums

Vatican Museums, Holy See's cash cow, to reopen from June 1

VATICAN CITY: The Vatican Museums will reopen on June 1, the Vatican said on Saturday, ending a closure caused by the coronavirus lockdown that has drained the Holy See's coffers. A statement said the Museums, which house some of the world's greatest Renaissance masterpieces as well as ancient Ro Read More...

Major Indian states seek delay in restarting flights as coronavirus cases rise

MUMBAI/NEW DELHI: Three large Indian states have sought to delay the planned opening of their airports on Monday as new cases of the novel coronavirus jumped by a record, complicating the federal government’s plan to resume flights after a two-month lockdown. India registered 6,767 new cases of Read More...

Two recovered patients re-test positive for Covid-19

BIRGUNJ: Two people that had recently been discharged after staying under observation at the Birgunj-based Narayani Hospital on being diagnosed with COVID-19, have tested positive for the infection again. Both the patients were discharged following recovery, yesterday. According to Ministry of He Read More...

Western Australia braces for worst storm in a decade

MELBOURNE: Western Australia battened down for its worst storm in 10 years on Sunday as the remnants of a tropical cyclone met a cold front with heavy rains and storm surges expected across the state's coast, officials said on Sunday. Winds gusting up to 210km per hour (130 miles per hour), wer Read More...