Usage of Cheques are being disincentivised

Reserve Bank of India has released a discussion paper on a plan to disincentivise usage of cheques. Public have been asked to send their comments before February 28, 2012.

Disincentivisation of cheques automatically means greater push to the electronic banking along with the attendant risks.

It is our observation that the risks in Electronic Banking in India have not so far been adequately addressed by Banks and even the efforts of RBI in this regard have failed to yield results.

The Damodaran Committee report has not been notified and the GGWG report is yet to be fully implemented by the Banks.

We therefore feel that the time is not ripe to push Indian Bank customers towards a forced adoption of E Banking. This may lead to higher risks in Banking and the responsibility for further endangering the Indian Banking system will be on RBI.

Public comments for the discussion paper are to be submitted before February 28, 2013.

Naavi.org will be submitting its own response separately.

We urge public to also submit their response on whether the use of cheques need to be disincentivised by positive action or be left to market forces.

Copy of the discussion paper is available here

Comments may be emailed here: chequeusage@rbi.org.in

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Naavi

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Facebook Risks

Here is a list of Facebook related malware and risks and guidelines for security.

Refer article in infosecinstitute

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Privacy Protected Zones Required

While discussing any legislation affecting Cyber Space, we discuss “Privacy” and “Data Protection” as important aspects for consideration. In India we are presently banking on ITA 2000/8 for “Data Protection”  and “Constitutional Rights” for “Privacy Protection”. ITA 2000/8 can indirectly provide some relief for privacy breach from electronic space under sections such as 43A ,72 and 72A.

However the “Data Privacy Bill” is yet to be passed and hence statutory protection is still not available to the citizens of India for privacy protection beyond the principles established by earlier Supreme Court decisions as part of the constitutional rights.

Further some of the recent developments on Section 66A and the actions taken by police indicate that provisions of ITA 2000/8 are likely to be misapplied from time to time by uninformed police who may also be motivated by other considerations such as political influence.

These twin aspects of “Lack of Privacy Law” and “Mis use of law” when applied to the corporate scenario present “Risks” which cannot be properly assessed,mitigated, absorbed or transferred. They remain as uncovered risks of business and could badly hurt any business.

While Indian companies have to live with such bad implementation of law, in the context of attracting international investments into IT in India, these risks are considered huge barriers that may put off most of the international operators intending to invest in India.

In the global scenario, “Cloud Computing” is on a growth path and either as part of such “Cloud Computing” initiatives or as an increased attention to the DRP requirements the need for “Secured Data Centers” in India have been growing. This also offers an opportunity for international players to invest in huge data center facilities in India at least in some states where “quality power” is not an issue. This is also an opportunity for Indian companies to operate Data Centers as a part of “Service Exports”.

However the lack of “Privacy Protection” coupled with the enormous administrative powers that ITA 2000/8 bestows on lower echelons of bureaucracy  and law enforcement make it difficult for reputed international players to seriously consider India as an offshore destination for their data center projects.

In this context we would like to place a suggestion before the community if it is time to set up designated “Privacy Protection Zones” where units will be provided privacy protection on par with the best global practices such as EU. In these zones special IT laws will be applicable which can be drafted specifically as “Special Cyber Space Laws”. Alternatively a “Privacy Protection Law” exclusively applicable to such zones can be drafted to work in conjunction with but overriding ITA 2000/8.

This being a high level policy decision, needs to be part of large consultative process. Naavi.org invites public comments on the proposal.

Naavi

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Letter sent to Chief Minister of Karnataka on Cyber initiatives

Following up on the earlier initiatives, an email letter has been sent to  Chief Minister of Karnataka reiterating the needs of the Netizens of Karnataka,under copies to the Minister of Law and Parliamentary affairs and the Secretaries of IT and law departments as well as the Chief secretary of the state.

All India Forum of Netizens (AIFON) will continue to follow up on this matter in the interest of the citizens and Netizens of Karnataka.

One of the objectives of AIFON is to mobilize a consolidated response of the Netizen community during elections so that our voices will be heard.

At present AIFON is in the initial days of formation and hope to make a difference to the society in due course.

Details of the letter sent are available here:

Naavi

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Is Indian Banking system hiding the risks?

The recent report of frauds in the Credit card system in India has given rise to a discussion on how safe is Indian Banking system and whether there is a systematic attempt to suppress threat information from public and give them a false sense of safety.

Mr Dinesh, a security expert shares his views in this article in informationweek.in

Naavi has been pointing out that major Banks are the culprits and RBI is unable to control those rogue banks.

When the full impact of the Cyber Crime frauds hits the Indian Banking industry, RBI may find itself in a situation where its own intentions and ability to regulate the Indian Banking industry may be questioned.

Unless RBI is able to raise above IBA and exercise its control on the Banks even if IBA is not in favour of the RBI regulations or control measures, Indian Banking customers continue to face the risk where a few of the top Banks may be wiped out of the market along with the adverse consequences which will also have political implications on Mr Chidambaram as the supreme controller of the national banking system.

Naavi

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Efficacy of Anti Virus software

The recent Chinese hacking of New York Times has raised the issue of the efficacy of anti virus or security softwares used by corporates.

According to NYT, the hackers had installed 45 custom malware over the previous three months of which only one could be detected by Symantec. (See article)

Symantec has however said in its defense that Times did not use the software properly.It said “The advanced capabilities in our endpoint offerings, including our unique reputation-based technology and behavior-based blocking, specifically target sophisticated attacks.Turning on only the signature-based anti-virus components of endpoint solutions alone are not enough in a world that is changing daily from attacks and threats. We encourage customers to be very aggressive in deploying solutions that offer a combined approach to security. Anti-virus software alone is not enough.”

This gives rise to a discussion on what are the default capabilities of an end point security software and what is the extent of expertise required by the clients to use such a software efficiently.

In this connection the this comparative test of different products for Home users would be useful. This test is based on the most common default settings and hence is of interest to an average user. In this test several products have been compared against three specific parameters namely ability to identify threats,repair them and the usability factor.

While evaluation of an anti virus solution for home users has to be based on default configurations without expecting too much of expertise, Naavi.org is also trying to find out the expectation level of informed buyers such as corporate customers regarding the security solutions they look for.

All said and done, Chinese hacking of NYT could also be due to targeted attack on the domain which would be difficult for an average AV software to detect. There is however a possibility of detecting it at least after the malware starts exhibiting its properties. i.e. if prevention fails at least early detection should help. In the NYT case Symantec seems to have failed in detecting the malware for nearly 3 months. This delay needs to be pondered over.

Naavi

Also: PCworld review

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