address the threat to the information systems. the forums such as this provide great opportunity to interact bis central bankers ’ speeches and understand the role that each one of us has to play and to also ensure that our actions and plans are complementary and not at cross purposes. cyber security preparedness – five commandments for safety in banking 14. let me start with a most common requirement. thou shall know your customer – which is my first commandment. all of us are aware of the requirements relating to know your customer or kyc as commonly referred to. much has been said, discussed and detailed about kyc that i shall not repeat all of them ; suffice to say now that it is essential to know our customer well or else we shall have to face the consequences which may be detrimental to our business objectives. 15. the second commandment of mine states that thou shall know your employee. most of the cyber frauds have some direct or indirect role of an insider, who generally happens to be an employee of the organisation which has been the target of the cyber security attack. there is an urgent need for an organisation to not only perform the antecedent verification of an employee at the time of recruitment, but also continuously monitor employee behaviour, trends in operational usage of the organisational resources, interaction levels with peers and subordinates and the like. today, it tools provide a lot of information on employee behaviour and patterns ; it is essential that organisations ascribe adequate importance to these aspects. 16. the third commandment reads as follows : thou shall keep your it systems up - to - date and free of all risky components such as viruses, spams, malware, spoofing software and so on. today, there are centralised it system facilities which can ensure that the updates are implemented centrally and also monitored centrally. 17. the fourth commandment is thou shall provide for maximum it governance. the broad requirement in this area relates to the need for ensuring good it practices such as ‘ maker and checker ’ for financial transaction processing, a four - eyes principle for it based operations, regular monitoring of system and operational logs, conduct of regular, periodical and well defined it system audit followed by suitable corrective action wherever required, and a separate distinct ciso ( chief information security officer ) who would continuously monitor the quality and efficacy of it and is security in the organisation. 18. my final commandment is thou shall ensure continued cyber security awareness amongst all players in the chain. the world of

for safe, secure, sound, efficient, accessible and authorized payment systems in the country. in this context, i would briefly outline the developments taking place in this space. 10. at the heart of payment market infrastructures ( pmis ) is the one owned by central banks which the world over is a real - time gross settlement ( rtgs ) system. as the world moves closer to real time everything, including payments and the inflection on innovation, better governance and wider access, the role of the rtgs system is evolving. this places new demands on the business and technology architectures of pmis and rtgs systems in particular. to move closer to providing access to the rtgs for longer durations, the customer timings have been recently extended. there has been a growing demand for providing wider access to the rtgs system and allow participation of non - banks. the highlevel committee on deepening of digital payments ( cddp ) recommended that nonbanking entities should be included as associate members of payment systems and 4 / 5 bis central bankers'speeches become an active player in enhancing acceptance infrastructure in the country. the recommendations are under examination. 11. another development in the markets is related to implementation of legal entity identifier ( lei ). in view of the financial crises across the world, lei has provided a way to identify financial connections so that regulators and firms can better understand the true nature of risk exposures across the financial system. in india, lei has been mandated across various sectors in the financial markets including derivatives and non - derivatives market and also for large corporate borrowers. this is being implemented in a phased manner. since it has been made mandatory for large corporate borrowers to obtain lei, banks should, apart from advising such borrowers to obtain lei, encourage such borrowers to obtain lei for their parent entity as well as all subsidiaries and associates. implementation of lei for large borrowers may help banks in better monitoring of transactions and hence, exposure of such borrowers across nations. 8. let me now conclude. the role of financial sector in a growing economy cannot be overemphasized. as the most important segment, the fixed income market in india has to grow to cater to the investment needs of an economy that aspires to become a usd 5 trillion economy in near future. while the rbi and other sister regulators will continue to draw the contours of growth with financial stability in mind, the market needs more activity, innovation and enterprise from