framework in the form of the public key infrastructure - pki, which is in conformity to the provisions of the information technology act, 2000. an effective security policy which would offer a shared vision of how the controls in the workplace should be implemented with the objective of protecting data, information and eventually, the economic value of the organisation. this has to be supplemented by education and training in these areas and reinforced by the actions and concerns of the top management so that a culture of security can be created. these controls have to be supplemented by surveillance, monitoring and auditing to detect unusual usage patterns and deficiencies. banks have to put in place such a policy and ensure that it is being implemented effectively, and then audit the it related functions so as to ensure that there are no lapses or deviations from the approved information security policy. another major challenge relates to the bridging the divide caused by distances. today, banking has broken all geographical barriers and demand from customers relates to ‘ anywhere and anytime banking ’. currently, it based offerings such as internet and mobile banking have provided customers with the means for meeting the requirement of being able to perform banking transactions from anywhere. the death of distances have also necessitated that banks in india do not merely look inward. developments elsewhere in the world have also a strong impact on the efforts of indian banks and these have to be factored in an always vibrant world of technology based banking. added to this is the fact that markets have shrunk digitally and this gap would reduce further in the morrow. it would be necessary to prepare ourselves for functioning in a very small knit shrunk world. information availability across a large section of people will bring in the challenge of being able to process such large masses of information. this is an opportunity not only for the banking sector but for other sectors including the it industry as well. banks will, therefore, brace themselves for co - operation and co - existence and geographical boundaries may move away into oblivion just as sharing of resources ( such as atms ) has already commenced propagation. we have all heard of the digital divide which is a challenge to be overcome by the banking industry as well. while the average indian customer may be as technology savvy or even better than his western counterpart, the cultural aspects of his relationships may necessitate a personal touch to the offerings of banks. further, all the technology based offerings by banks have a bias towards the major towns and cities and the need for reaching the mid size cities as well

too. a few major aspects which need to be reckoned relate to the • need for standardisation - across hardware, operating systems, system software, application software to facilitate inter - connectivity of systems across branches • need for high levels of security - in an environment which requires high levels of confidentiality, security is an important requirement • once both the above are achieved, the next logical approach would be towards communication and networking - use of networks which would facilitate centralised databases and distributed processing. exploitation of computer networks by banks would result in savings in cost and increase in efficiency • need for a technology plan which has to be periodically monitored and also upgraded consequent upon changes in technology itself • need for business process re - engineering with the large scale usage of computers - the objective is not to merely mechanise activities but to result in holistic benefits of computerisation for both the customer and the staff at branches • need to address the issue of human relations in a computerised environment especially from the point of human resources development • sharing of technology experiences and expertise so as to reap the benefits of technology implementation across a wider community all these changes have, however, a host of attendant challenges. prominent among them is the paradigm shift in the concept of security. with the delivery channels relating to funds based services such as movement of funds electronically between different accounts of customers - taking place with the use of technology, the requirements relating to security also need to undergo metamorphosis at a rapid pace. various concepts such as digital signatures, certification, storage of information in a secure and tamper - proof manner all assume significance and have to be part of the practices and procedures in the day - to - day functioning of banks of tomorrow. i must at this juncture, add that all these would be added requirements and the well established practices of today may also have to not only continue but also co - exist along with the new requirements. security requirements have to be provided from a two pronged perspective - first for the internal requirements of the banks themselves and the second relating to the legal precincts of the laws of the land. it will be a matter of satisfaction to note that the infinet ( indian financial network ) is a safe, secure and efficient communications network for the exclusive use of the banking sector, which provides for inter - bank communication which implies that banks have to now function as a group and at the same time competing with one another too. the key advantage of the infinet is its own security