E-security in Banking System: Significance and Major Threats

Authors

  • Shruti Kasera

Keywords:

e-banking, e-security, legal framework, cybercrimes, cybersecurity

Abstract

Banking is the growth engine of the economy. A decent banking system is important for the growth of a nation. With the advent of technology, the concept of e-banking has come into being. The banking system has adopted information technology. E-banking is also termed internet banking or online banking, in which all financial activities are carried out with the help of internet technology. In layman's terms, it offers traditional banking services through the virtual medium. This research paper consists of the description of e-banking and its various aspects. This article covers various kinds of online financial transactions called core banking. With the outburst of technology in the banking sector, the cases related to online banking frauds in India have also increased terrifically. The dependence of the banking system on technology has led to several challenges in the present scenario, concerning both financial security and personal security. India does not have sufficient internet banking laws but the Reserve
bank of India has issued a few guidelines recently in this regard. Though it is not sufficient to make the banks follow them robustly and still requires provisions for cyber security procedures. A legal framework is outlined in the paper that pertains to the provision of banking services over the Internet. This paper highlights the legal provisions and issues relating to the online banking system. The paper attempts to discuss the major issues in internet banking with special reference to e-security in the
banking system. Bank cyber crimes occur every day as hackers manipulate the online information systems of financial institutions to compromise a financial institution's financial data. The banks and customers both lose huge amounts of money. Transacting through internet banking raises a number of concerns regarding the safety and security of finances, transactional information, and account access paths. The paper addresses the questions regarding security threats and what can be the solution to
prevent the proliferating rate of cyber crimes and what measures can be taken for the security of data. The information mentioned in this paper is a result of the blend of doctrinal and empirical research methodologies.

References

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Published

2023-02-27

How to Cite

Kasera, S. . (2023). E-security in Banking System: Significance and Major Threats . Journal of Banking and Insurance Law, 5(2), 1–8. Retrieved from https://lawjournals.celnet.in/index.php/jbil/article/view/1163