Khayaal aapka..loss bhi aapka..laabh to hamara

In an interesting technology innovation, ICICI Bank has announced introduction of a “Face Book” application which can enable you transfer funds from your account to your face book friends.

According to information available, in order to  make a payment to any friend on Facebook using the Pockets app customers fill in a short form, choosing which account to send the money from, the recipient’s name and the amount to be transferred. Once the transaction is confirmed, both the sender and the recipient receive a ‘coupon ID’ and a passcode. Then  the recipient has to click a link in an e-mail, which takes them to a page where they have to enter the coupon number, their name and bank account details and, finally, the passcode, to accept the payment.

According to the CEO of ICICI Bank, Mrs Chanda Kochchar,  “This innovation is in line with our philosophy of Khayaal Aapka wherein we offer products and services which make banking easier and more convenient for our customers. ‘Pockets by ICICI Bank’ will enable the young consumers, who spend a lot of time on Facebook, to carry out a wide set of transactions without having to leave the social media site.”

Refer report

This is fine. But what ICICI Bank needs to disclose is the “Risk” that this new application will pose to the users and who is responsible for the loss if any which may arise due to either phishing or a trojan on the mobile.

I also urge RBI to clarify if this form of banking is approved from their end taking into account any risk assessment that has been made. I would like some body in Mumbai to apply for an RTI with RBI to find out if a risk assessment has been done by RBI before permitting this  Facebook app and if not whether the system of Internet Banking as approved by RBI can be extended to such methods. If the risk in such applications is higher than the current Internet Banking or Mobile Banking methods, will RBI clarify what steps it has taken to ensure safety of Bank Customers.

We would like to draw the attention of the new Governor Mr Raghuram Rajan that while he is correct in identifying the inflaiton control as a priority, he should also bestow attention on preserving the integrity of the Indian Banking system.

Naavi

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About Vijayashankar Na

Naavi is a veteran Cyber Law specialist in India and is presently working from Bangalore as an Information Assurance Consultant. Pioneered concepts such as ITA 2008 compliance, Naavi is also the founder of Cyber Law College, a virtual Cyber Law Education institution. He now has been focusing on the projects such as Secure Digital India and Cyber Insurance
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1 Response to Khayaal aapka..loss bhi aapka..laabh to hamara

  1. steve says:

    ‘Khayaal aapka” what a joke!!!!!
    we have inherent and proven risks in our banking tech and now what we are seeing, payment to facebook friends.
    i see as it as an added risk, it has rightly pointed out that the security review is still pending and i wonder, why the banking regulator isnt concerned?
    and who will be responsible if in case a malicious code automates the transaction, as we all know that the famous android platform is hugely targeted compared to iOS, Windows, blackberry, symbian and other phone platforms. (by default its the customer who will be held responsible by bank, as we see flashing headers on any bank website we login..which isnt right)
    already facebook is a ‘timepass’ for many people, then why would a person transact through a timepass platform.
    let us first concentrate to strengthen the internet banking architecture and then move on..
    “lets walk first, then run”
    in my opinion, a sensitive function of banking shouldnt be integrated with such unfruitful social media sites.
    let banking and timepass be on their own tracks, dont mix them up, this might open new doors for other unwanted incidents, ultimately its the customer who will be in loss, not the banks, which is rightly stated on article’s header.
    Thank you.

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