be examined in its totality for practicable implementation at all offices / departments. i am sure that most of the newer software programmes would have all the essential and desirable features as mandatory part of their architecture. the software that are currently in use would have to be scrutinised from the point of view of conformity to the minimum security requirements that i had dwelt upon. as leaders who would be using technology as a cutting edge towards excellence in services, you would all agree that these key requirements of security are required to be addressed in the sessions of today. it is gratifying to note the initiative taken by iba in organizing such seminars and conferences which facilitate transfer of knowledge. i am sure that the deliberations of the day would be enriching to all the delegates. i wish the conference all success. thank you.

v leeladhar : challenges in banking security inaugural speech by mr v leeladhar, deputy governor of the reserve bank of india, at the banking security conference - 2005, arranged by the indian banks ’ association, mumbai, 22 june 2005. * * * fellow participants and colleagues, it gives me great pleasure to be in your midst, as we commence this workshop on banking security. i am particularly happy to be here to address a group of involved persons who are the harbingers of change - so to say - in the use of technology in banking. banking as a business involves the management of risks. while much has been said about the financial risks, the risks arising out of the large scale implementation of technology is of recent origin, with banks having taken to large scale use of technology for their normal day - to - day business. security in banks has thus assumed significant proportions, comprising both physical aspects in addition to those relating to information, information systems and information technology, all of which have an impact on the reputational risk of a financial organisation. in a world where geographical barriers are losing significance and the death of distances is already a reality, it is but essential that security be given prime importance in a transnational scenario where large sums of money are at stake. while the challenges related to physical security are those which can be confronted with relative ease, the position is much more complicated in respect of it security. it is widely accepted that security is as effective as the weakest link in a chain. and, in the case of banking, the weakest link, in my view, does not relate to the components of technology ( which do have an implication although ), but on the person who is part of the information supply chain, and is typically the insider in the bank itself. this reminds me of an interesting or rather disturbing question one of the top police officials asked of the bankers in a security conference. “ are you keeping a track of some sort of the officials who left the organization? are you at least aware where they are now? ” there was complete silence around the table. he went on to clarify that most of the financial crimes had insider links. this is supported by studies carried out by international organisations. these studies have indicated that a substantial portion of the breach of security in financial institutions have occurred on account of, or have been triggered with the aid of internal exposures or internal controls being compromised. against this backdrop, the security requirements of the banking sector need to be assigned high