IDRBT Banking Technology Excellence Awards 2011-12

Technology is constantly changing the way we bank and making it more convenient and more comfortable for the common person. Convenience Banking is in and playing a pivotal role in ushering it in through various innovative technology initiatives and interventions is the Institute for Development and Research in Banking Technology (IDRBT). The Institute makes four key contributions to the Indian Banking and Financial Sector on 3rd August, 2012.

Dr. D. Subbarao, Governor, Reserve Bank of India and Visitor, IDRBT inaugurated the Institute's Mobile Banking Security Lab, Released the IDRBT Information Security Framework, Launched the Indian Banks' Technology Consortium (IBTC), and presented the IDRBT Banking Technology Excellence Awards for the year 2011–12. A brief on these initiatives are as under:

Mobile Banking Security Lab

Using Mobile Phones to get Banking Services round the clock and from anywhere is now an expectation of our society. Providing banking solutions by ensuring safety, security, reliability and interoperability, on both low-end and high-end mobile phones, through various mobile communication channels such as SMS, USSD, IVRS and GPRS is a challenge for Banks and Financial Institutions. The Mobile Banking Security Lab (MBSL) would help explore solutions to the evolving challenges in the area of Mobile Banking and Security and provide guidance to Banks and Financial Institutions through Research and Development activities. The objectives of the MBSL are to:

  • Support the Research and Development activities of IDRBT with experimental insight into Mobile Communication, Mobile Banking and Mobile Security areas.
  • Train researchers, students and participants from Banks and Financial Institutions to practically understand the current MBS models, frameworks, best practices and evolving challenges.
  • Provide testing environment of MBS applications and provide solutions to banks and financial institutions for their MBS requirements.
  • Provide customer education, conduct Training Programmes, Workshops and Conferences on Mobile Banking and its Security.
  • Provide consultancy to Banks & Financial Institutions in policy framework, technical guidance, testing, evaluation, etc.
  • Provide solutions by analyzing the emerging attacks on mobile phones and frauds happening through mobile banking.

Please click here to download more details on Mobile Banking Security Lab

IDRBT Information Security Framework

Banks require very stringent Information Security because any breach in a bank's security could lead to losses both in financial and reputational terms and also have serious implications for systemic stability. Banks have to put in place an appropriate information security policy and implement it effectively to ensure integrity, security and confidentiality of information.

Recognizing the imminent need for a common framework that can assist banks and other financial institutions in implementing security solutions, the Institute has prepared the IDRBT Information Security Framework. This framework would help banks in benchmarking their systems against the global best standards and in enhancing information security.

The Institute collaborated with 32 bankers to prepare this Framework and took inputs from ground level practitioners of information security to arrive at a practical, simple and easy-to- use guidebook that will help banks to benchmark their security against world class standards.

The framework identifies the following levels at which controls are to be implemented.

  • Enterprise Level Security
  • Platform/ Infrastructure level Security
  • Application Level Security
  • Data Level Security

At each level, specific areas where security principles such as confidentiality, integrity, and availability are to be applied have been identified. The framework provides the objective and rationale for implementation of the framework at each level of operation down to the bottom of the pyramid from the enterprise level to the data level. It has taken into account various functional areas of an organization where the information security has to be implemented using an appropriate mix of technology, people and processes. This framework will go a long way in achieving the objective of safeguarding the most precious asset of any organisation, i.e. information.

Please click here to download the IDRBT Information Security Framework

Indian Banks' Technology Consortium (IBTC)

The Working Group on Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds (Chairman Shri G Gopalakrishna, ED, RBI), had recommended the formation of a Technology Consortium under the aegis of IDRBT to provide guiding light to banks in the area of Financial Technological Developments.

Accordingly, IDRBT is establishing the Indian Banks' Technology Consortium (IBTC) to work with Indian banks, academia, industry bodies and outstanding professionals for the advancement, development and practical application of technology in banking.

The IBTC shall provide a platform for pioneering new technologies, collaborative research and for sharing and solving problems and challenges in banking technology. Further, the IBTC shall develop and update standards in the use of technology and information security in banks for improving customer service and advocating regulation/legislation. An Executive Board consisting of Director, IDRBT; Chief Executive, IBA; Chairman / Executive Directors from Banks; Academicians, RBI, Government and NASSCOM Representatives, would manage the IBTC.

Please click here to download IBTC Scroll

IDRBT Banking Technology Excellence Awards for the year 2011–12

The Institute, with a view to infuse a spirit of healthy competition and accelerate the process of technology implementation and innovation among various banks in the country, instituted the IDRBT Banking Technology Excellence Awards in the year 2001.

These Awards from the Institute are meant to act as catalysts by recognizing and rewarding the efforts of banks aimed at better use of technology, greater levels of technology absorption, and improved levels of customer service and satisfaction through innovative use of technology.

The Awards are arrived at after a careful scrutiny and evaluation of the inputs called for from all the banks (both public and private) on a wide range of parameters by an eminent jury. Accordingly, these awards are the best indicators of efficient and effective technology implementation and innovation in the Indian Banking and Financial Sector.

The awards, meant to recognise and honour the best and innovative use of information technology to enhance the levels of customer service and satisfaction, were presented in the following six categories:

  • Use of Technologies for Financial Inclusion
  • Mobile Banking and Electronic Payments
  • CRM & Business Intelligent Initiatives
  • IT Implementation and Management
  • IT for Operational Effectiveness
  • Managing IT Risk

Strong and heartening response was received from the banks in all awards categories, indicating an overall increase in level of confidence and maturity in use of technology in banking. A total of 30 banks, with 138 nominations, participated in the awards process, comprising 21 large and 9 small banks. Banks were segregated into large and small category based on deposit size of INR 50,000 crores.

An eminent jury consisting of Shri K. V. Kamath, Chairman, ICICI Bank & Infosys (Chairman of the Jury), Dr. R. B. Barman, Former Executive Director, Reserve Bank of India; Prof. G. Sivakumar, Professor, Indian Institute of Technology, Bombay; Dr. K. Ramakrishnan, Chief Executive, Indian Banks Association; and Prof. U.B. Desai, Director, Indian Institute of Technology, Hyderabad; adjudged the banks.

And the winners for the IDRBT Banking Technology Excellence Awards 2011-12 are:

Award Category Winner Received by Photos
Best Bank Award Among Large Banks For "Use of Technology for Financial Inclusion" Canara Bank Shri S. Raman, CMD
Best Bank Award Among Large Banks For "Mobile Banking and Electronic Payments" State Bank of India Shri Pratip Chaudhuri, Chairman
Best Bank Award Among Small Banks For "Mobile Banking and Electronic Payments" Federal Bank Ltd. Shri Shyam Srinivasan, MD & CEO
Best Bank Award Among Large Banks For "CRM & Business Intelligence Initiatives" State Bank of India Shri Pratip Chaudhuri, Chairman
Best Bank Award Among Small Banks For "CRM & Business Intelligence Initiatives" Federal Bank Ltd. Shri Shyam Srinivasan, MD & CEO
Best Bank Award Among Large Banks For "IT Implementation and Management" ICICI Bank Ltd. Shri Mukesh Kumar Jain, Chief Technology Officer
Best Bank Award Among Small Banks For "IT Implementation and Management" Karur Vysya Bank Shri K. Venkataraman, MD & CEO
Best Bank Award Among Large Banks For "IT for Operational Effectiveness" HDFC Bank Ltd. Shri Paresh Sukthankar, Executive Director
Best Bank Award Among Small Banks For "IT for Operational Effectiveness" IndusInd Bank Ltd. Shri Suresh Pai, Executive Vice President and Advisor
Best Bank Award Among Large Banks For "Managing IT Risk" (This Category of Award is co-sponsored by ISACA) ICICI Bank Ltd. Shri Mukesh Kumar Jain, Chief Technology Officer
Best Bank Award Among Small Banks For "Managing IT Risk"(This Category of Award is co-sponsored by ISACA) Karur Vysya Bank Shri K. Venkataraman, MD & CEO
Best Bank Award Among Small Banks For "Managing IT Risk"(This Category of Award is co-sponsored by ISACA) South Indian Bank Ltd. Dr. V. A. Joseph, MD & CEO

Speaking on the occasion, Dr. D. Subba Rao, Governor, Reserve Bank of India, and Visitor, IDRBT, made the following key points in his presentation on Indian Payment and Settlement Systems, Responsible Innovation and Regulation:

  • The financial crisis has triggered a number of questions about financial innovation. The big lesson is that both innovators and regulators will have to more responsible.
  • RBI values financial innovations that improve the efficiency of financial intermediation, do not erode financial stability, do not compromise customer interest, and further financial inclusion
  • Even as the regulator, RBI continues to take the lead in facilitating innovation
  • RTGS was introduced in 2004 as a large value payment system. Huge expansion in turnover since then, both in value and volume terms
  • Non-banks allowed to enter the retail payment space. Now, non-bank also allowed to set up "White Label ATMs"
  • Promoting Safety and Security of Payment Instruments: Security of online card transactions, Implementing CTS2010 standards, Immobilizing cash retraction facility in ATMs
  • Customer Centric Regulation: Disputed amounts in failed ATM transactions should be credited within seven days; Introduction of differential MDR to encourage debit card transactions; Helping migrant population - domestic person-to-person fund transfers
  • Introduction of New Payment Products: Remarkable growth in new payment products and access channels; Regulatory initiatives in the area of pre-paid instruments; Operating guidelines on mobile banking
  • Large value payment systems have shifted to electronic mode. Retail payment systems are still largely paper centric. Why this lag?
  • Reasons: Slow pace of infrastructure building; Limited product innovation; Lack of initiative by banks
  • Way Forward: Adopt' world's best practices; 'Adapt' them to the Indian environment; Vision Document (2012-15) by RBI.
  • Innovators -'Push the envelope'; Regulators - Make sure the envelope is sturdy and strong.

Release of Booklet on Technology in Banking

Most banks have evolved rapidly in technology adoption with infrastructure, governance, policies, procedures and security in place. Initiatives like enterprise data warehouse and business intelligence solutions are being implemented for real-time data analysis and complete view of customer relationships.

Significant initiatives are being taken by banks on the financial inclusion front. With the country's mobile penetration at roughly 85%, mobile banking has been a thrust area for banks with most banks already implementing a comprehensive service suite. The IT implementation capabilities of banks has improved tremendously with most banks having aligned their corporate structure for a better and improved interactions of the business and IT teams for implementation.

IDRBT and E&Y have taken the initiative to compile the technology development of Indian banking Sector in the form of booklet titled "Technology in Banking". The booklet was released by Shri Pratip Chaudhary, CMD, State Bank of India. (Click Here to download)