Lok Sabha Question No. 2222 (UNSTARRED), answered on 2017-03-15
Subject: Bank’s Cyber Insurance
Ministry: ELECTRONICS AND INFORMATION TECHNOLOGY
Asked by: RAVINDRA VISHWANATH GAIKWAD

## GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY

## LOK SABHA UNSTARRED ADMITTED QUESTION NO.  2222

TO BE ANSWERED ON: 15.03.2017

## BANK'S CYBER INSURANCE

## 2222   PROF.  RAVINDRA VISHWANATH GAIKWAD:

Will the Minister of Electronics and  Information Technology be pleased to state:

- (a) whether there is any proposal under consideration of the Government to start/lay stress on banks' cyber insurance after the demonetisation and digitisation and also the increasing cyber attacks;
- (b) if so, the details thereof;
- (c) the time by which it is likely to be implemented;
- (d) if not the reasons thereof;
- (e) the number of cases of frauds came to the notice of the Government till now and the losses incurred due to such incidents.

## ANSWER

## MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI P. P. CHAUDHARY)

- (a) (b)  (c)  and  (d):    Reserve  Bank  of  India  (RBI)  vide  circular  DBS.CO.ITC.BC.No.  6 /31.02.008/2010-11    dated  April  29,  2011  on  implementation  of  recommendations  of  Working Group  on  Information  Security,  Electronic  Banking,  Technology  Risk  Management  and  Cyber Frauds, has indicated that banks may consider insurance to transfer risk to a third party, however taking due care regarding certainty of payments in the event of disruptions. Banks take decisions on having  arrangements  for  cyber  insurance  as  per  their  approved  policy  framework.  Further,  Vide Circular  no.  DBS.CO/CSITE/BC.11/33.01.001/2015-16  dated  June  2,  2016  on  Cyber  Security Framework in Banks, banks have been advised to report all unusual cyber security incidents to RBI within 2 - 6 hours of detection.
- (e):  As of February 28, 2017, the details of the incidents reported by bank since issuance of above mentioned circular  are as  under:

|   Sl No | Type of Incidents                    |   Total no of incidents reported |
|---------|--------------------------------------|----------------------------------|
|       1 | Ransomware                           |                                7 |
|       2 | Distributed Denial of Service (DDos) |                                2 |
|       3 | Phishing Attacks                     |                                6 |
|       4 | Rogue Mobile Application             |                                6 |
|       5 | Card Skimming                        |                                3 |
|       6 | Virus/Malware                        |                               13 |

Further, the details of  frauds related to Credit/ ATM / Debit cards & Net Banking    reported by banks   during last three years and current year (From April 01, 2013 to December 31, 2016) and extent of losses occurred due to such incident is as per Tables below:

- (i) All Frauds - including those involving below ` 1 lakh.
- (ii) Extent of loss incurred by Banks for Frauds for amount > =` 1 lakhs
- (iii) The Extent of loss for fraud below Rupees One lakh for the above period is not available with RBI.

| Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   | Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   | Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   | Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   | Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   | Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   | Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   | Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   | Details of frauds reported in Credit Cards/ ATM/Debit Cards and Internet Banking Categories (Amount in Lakh ` )   |
|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
| Financial Year                                                                                                    | Credit Cards                                                                                                      | Credit Cards                                                                                                      | ATM/ Debit Cards                                                                                                  | ATM/ Debit Cards                                                                                                  | Internet Banking                                                                                                  | Internet Banking                                                                                                  | Total (All three categories)                                                                                      | Total (All three categories)                                                                                      |
| Financial Year                                                                                                    | No. of Frauds                                                                                                     | Amount                                                                                                            | No. of Frauds                                                                                                     | Amount                                                                                                            | No. of Frauds                                                                                                     | Amount                                                                                                            | No. of Frauds                                                                                                     | Amount                                                                                                            |
| 2013-14                                                                                                           | 7890                                                                                                              | 5481.59                                                                                                           | 1307                                                                                                              | 823.17                                                                                                            | 303                                                                                                               | 1495.83                                                                                                           | 9500                                                                                                              | 7800.59                                                                                                           |
| 2014-15                                                                                                           | 10382                                                                                                             | 4231.97                                                                                                           | 2498                                                                                                              | 1385.98                                                                                                           | 203                                                                                                               | 2445.8                                                                                                            | 13083                                                                                                             | 8063.75                                                                                                           |
| 2015-16                                                                                                           | 9849                                                                                                              | 4597.79                                                                                                           | 6585                                                                                                              | 3126.85                                                                                                           | 34                                                                                                                | 175.31                                                                                                            | 16468                                                                                                             | 7899.95                                                                                                           |
| June, September, December Quarter 2016                                                                            | 4557                                                                                                              | 2156.78                                                                                                           | 4064                                                                                                              | 1900.8                                                                                                            | 68                                                                                                                | 158.18                                                                                                            | 8689                                                                                                              | 4215.76                                                                                                           |

Source: FMR2 submitted by banks

| Details of frauds (amount involved >= ₹ 1.00 Lakh) reported in Credit Cards/ Debit orATM Cards &Internet Banking - Amount in Lakh ( ₹ ) - Source: FMR1   | Details of frauds (amount involved >= ₹ 1.00 Lakh) reported in Credit Cards/ Debit orATM Cards &Internet Banking - Amount in Lakh ( ₹ ) - Source: FMR1   | Details of frauds (amount involved >= ₹ 1.00 Lakh) reported in Credit Cards/ Debit orATM Cards &Internet Banking - Amount in Lakh ( ₹ ) - Source: FMR1   | Details of frauds (amount involved >= ₹ 1.00 Lakh) reported in Credit Cards/ Debit orATM Cards &Internet Banking - Amount in Lakh ( ₹ ) - Source: FMR1   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
| Financial Year                                                                                                                                           | No. of cases reported                                                                                                                                    | Total Amount involved                                                                                                                                    | Extent of Loss to banks                                                                                                                                  |
| 2013-14                                                                                                                                                  | 978                                                                                                                                                      | 5451.77                                                                                                                                                  | 3225.31                                                                                                                                                  |
| 2014-15                                                                                                                                                  | 845                                                                                                                                                      | 5169                                                                                                                                                     | 1848.5                                                                                                                                                   |
| 2015-16                                                                                                                                                  | 1190                                                                                                                                                     | 4019.12                                                                                                                                                  | 2702.26                                                                                                                                                  |
| June, September& December Quarter 2016                                                                                                                   | 1081                                                                                                                                                     | 3501.88                                                                                                                                                  | 2635.43                                                                                                                                                  |
| Total                                                                                                                                                    | 4094                                                                                                                                                     | 18141.77                                                                                                                                                 | 10411.5                                                                                                                                                  |

**********

## Final  list of the Questions

## Ministry of Electronics and Information Technology (Parliament Section)

The  following questions have been admitted   for answer in Lok Sabha on 15.03.2017 (Wednesday).

| Sl. No.   | D.No.   | Admit No.   | Subject                                                 | File No.       | Concd. GCs / HODs        | Remarks   |
|-----------|---------|-------------|---------------------------------------------------------|----------------|--------------------------|-----------|
|           |         |             | UNSTARRED                                               |                |                          |           |
| 1.        | 5330    | 2085        | Enrolment of Aadhaar in Assam                           | 2(79)/17-Parl. | JS(e-Gov.) / CEO-Aadhaar |           |
| 2.        | 5341    | 2088        | Use of Data for Apps                                    | 2(61)/17-Parl. | DG, NIC                  |           |
| 3.        | 5347    | 2089        | Digital Literacy in rural areas                         | 2(58)/17-Parl. | JS(SM)                   |           |
| 4.        | 5471    | 2108        | BPO's in rural areas                                    | 2(73)/17-Parl. | JS(RK)                   |           |
| 5.        | 5480    | 2111        | Consultation Services through CSC's                     | 2(67)/17-Parl. | JS(e-Gov.)               |           |
| 6.        | 5520    | 2117        | Central Services offering e-Transactions                | 2(76)/17-Parl. | JS(e-Gov.)               |           |
| 7.        | 5559    | 2124        | CSC for Assembling and Manufacturing LED                | 2(63)/17-Parl. | JS(e-Gov.)               |           |
| 8.        | 5607    | 2132        | Training of the Trainers Programme                      | 2(77)/17-Parl. | JS(SM)                   |           |
| 9.        | 5818    | 2153        | Digital Village Panchayat                               | 2(71)/17-Parl. | CEO-NEGD                 |           |
| 10.       | 4836    | 2169        | Risk in Cashless payments                               | 2(84)/17-Parl. | GC(CL&ES)                |           |
| 11.       | 7266    | 2172        | Investment in start-ups                                 | 2(94)/17-Parl. | JS(RB)                   |           |
| 12.       | 7347    | 2173        | Charge on Digital Transactions                          | 2(86)/17-Parl. | JS(SKR)                  |           |
| 13.       | 7438    | 2176        | Infrastructural Development for Digital Literacy        | 2(60)/17-Parl. | JS(SM)                   |           |
| 14.       | 9446    | 2188        | Assocham Report on digital India                        | 2(48)/17-Parl. | JS(e-Gov.)               |           |
| 15.       | 9563    | 2203        | Electronics Industry in India                           | 2(81)/17-Parl. | JS(RB)                   |           |
| 16.       | 9564    | 2204        | Effect on HIB Visa Raw on IT Sector                     | 2(55)/17-Parl. | JS(RK)                   |           |
| 17.       | 9572    | 2205        | Privacy Issues in Aadhaar Bill                          | 2(74)/17-Parl. | JS(e-Gov.) / CEO-Aadhaar |           |
| 18.       | 9605    | 2210        | Legality of online transactions                         | 2(75)/17-Parl. | JS(SKR)                  |           |
| 19.       | 9621    | 2211        | Digital Literacy                                        | 2(62)/17-Parl. | JS(SM)                   |           |
| 20.       | 9624    | 2212        | Unauthorised Agencies offering Aadhaar related services | 2(50)/17-Parl. | JS(e-Gov.) / CEO-Aadhaar |           |
| 21.       | 9772    | 2222        | Bank's Cyber Insurance                                  | 2(91)/17-Parl. | JS(RB)                   |           |
| 22.       | 9896    | 2232        | Software Testing Centres                                | 2(83)/17-Parl. | GC(AK) / DG, STQC        |           |
| 23.       | 7439    | 2280        | Promotion of cashless Economy                           | 2(85)/17-Parl. | JS(SKR)                  |           |
| 24.       | 9305    | 2287        | Global fraud and risk survey                            | 2(46)/17-Parl. | GC(AK)                   |           |
| 25.       | 9500    | 2298        | Anti Malware Centre                                     | 2(54)/17-Parl. | GC(AK)                   |           |

## THERE IS NO STARRED QUESTION IN LOK SABHA ON 15.03.2017.

2.   Draft Reply must be typed in double space. File  containing the answer to   Questions please be submitted latest by 09.03.2017 for onward submission to Hon'ble Minister, MeitY / Hon'ble MOS, MeitY.
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