Parliamentary panel suggests formation of regulatory body on cyber security

A high-level Parliamentary panel has suggested setting up of a centralised and overarching regulatory authority, specifically focussed on cyber security.

This proposed authority would shoulder the responsibility of safeguarding the nation's critical IT infrastructure and networks from cyber threats, the panel said in a slew of recommendations on cyber security and rising instances of cyber crime.

The Parliamentary Standing Committee on Finance, headed by BJP's Jayant Sinha, presented its report on the aforementioned subject in both houses of Parliament on Thursday.

It suggested that collaborating with states and private sector entities would help develop and implement robust cyber security policies, guidelines and best practices.

The committee further recommended setting up of a whitelisting framework for Digital Lending Agencies (DLAs) and other “financial intermediaries” as a measure to combat illegal practices and promote a standardised code of conduct in the digital lending sector.

To enhance the prevention and detection of fraud in the banking sector, the panel has suggested that a Central Negative Registry should be formed, which would consolidate information on fraudsters' accounts and the official documents they may have utilised.

It further emphasised that there should be an automatic compensation system as devised by the RBI and it should be the financial institution’s sole responsibility to immediately compensate the hapless customer, pending further investigation and final traceability of funds.

The panel also felt that promoting supervisory cooperation and knowledge exchange with global regulators will facilitate a collective response to the exponentially growing cyber threats. Therefore, it has recommended the government to develop “next practices” based on India’s specific needs and requirements.