The ideals of mobile banking in India are not new. We have seen media reports from time to time regarding suggested use of mobile banking in India. Although the idea is good yet its actual implementation is far from being accomplished.
There are many techno legal issues that are hindering the use of mobile banking in India. Absence of cyber security culture among the banks in India is the main reason for the failure of mobile banking in India.
The Reserve Bank of India (RBI) has been playing an active role to inculcate sense of cyber responsibility among banks of India. However, all its efforts have proved to be a waste till now in the absence of time bound results and stringent penalty provisions for failure to comply with RBI’s directions.
Similarly, the Internet banking guidelines in India by RBI must be further refined keeping in mind the ever increasing Internet banking frauds in India. Cyber security of banks in India is in a very poor state. Cyber security due diligence for banks in India must also be ensured by RBI that is presently missing. Although appointment of chief information officers (CIOs) has been made mandatory for all banks in India yet till now banks have not followed this requirement. Norms for mobile governance and e-authentication in India is also missing as on date.
As per the latest announcement of RBI, it has been considering setting up of a committee to examine feasibility of encrypted SMS-based fund transfers. RBI would set up a technical committee to examine the feasibility of using encrypted SMS-based funds transfer using an application that can run on any type of handset.
Smart phones are vulnerable to all sorts of malware and cyber attacks. For instance, Android is facing serious malware issues and such vulnerable phones cannot be kept in loop for mobile banking purposes. Absence of mobile cyber security in India can frustrate the efforts of RBI in this regard.
Mobile banking cyber security in India is urgently required on a priority basis before we start using mobile banking or related services in India. For the time being India is not ready for mobile governance and its mindless use may bring counterproductive results.