Banking has transformed from branches to desktop computer and now to mobile phones. With the rising number of mobile subscribers, most financial institutions see mobile banking as a strategic channel.
However, any new technology-led medium comes with risk. Therefore, in order to ensure a secure experience for everyone, the safety measuresmust increase alongside the risks. The banks and regulators take enough precautions to ensure that a customer’s data is secure.
However, it is important that customers are also careful and well informed about the data shared over mobile networks, to eliminate any chance of data theft or misuse.
Here are a few measures taken by banks in India to ensure security of mobile banking:
> The banks make sure that they deploy the best in class technology to extend mobile banking security to customers. For instance, ICICI Bank uses 128-bit encryption, for the transmission of information, which is the highest permitted level of encryption in India. If the information provided by the customers is not transmitted through this encryption, the customers' system will display an appropriate message ensuring the best level of secrecy for the customer's information.
> Any kind of prepaid instrument like e-money, e-coupons, e-wallets have been brought under regulation with the enactment of Payment and Settlement Systems Act 2007. This puts a complaint addressal system in place.
> Most banks use Interbank Mobile Payment Services (IMPS) operated by the National Payments Corporation of India with the approval of the Reserve Bank of India (RBI). IMPS enables real time transfer of funds between bank accounts and provide a centralised inter-operable interbank settlement service for mobile banking transactions.
However, any new technology-led medium comes with risk. Therefore, in order to ensure a secure experience for everyone, the safety measuresmust increase alongside the risks. The banks and regulators take enough precautions to ensure that a customer’s data is secure.
However, it is important that customers are also careful and well informed about the data shared over mobile networks, to eliminate any chance of data theft or misuse.
Here are a few measures taken by banks in India to ensure security of mobile banking:
> The banks make sure that they deploy the best in class technology to extend mobile banking security to customers. For instance, ICICI Bank uses 128-bit encryption, for the transmission of information, which is the highest permitted level of encryption in India. If the information provided by the customers is not transmitted through this encryption, the customers' system will display an appropriate message ensuring the best level of secrecy for the customer's information.
> Any kind of prepaid instrument like e-money, e-coupons, e-wallets have been brought under regulation with the enactment of Payment and Settlement Systems Act 2007. This puts a complaint addressal system in place.
> Most banks use Interbank Mobile Payment Services (IMPS) operated by the National Payments Corporation of India with the approval of the Reserve Bank of India (RBI). IMPS enables real time transfer of funds between bank accounts and provide a centralised inter-operable interbank settlement service for mobile banking transactions.
> Most banks provide official m-banking applications for smartphoneusers, which go to great lengths making information, sent using these apps, highly encrypted. These apps are available on the bank's official website and can be downloaded easily as per the phone compatibility.
Though RBI along with the banks and mobile service providers have continuously made efforts to ensure mobile banking security, customers also need to exercise caution while making important transactions on the mobile phones. Simple things like setting banking alerts, clearing history on mobile browsers or not using public wi-fi connections to make banking transactions can help in security of data while using the mobile devices.
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