Adopt risk-based supervision, zero-trust approach to curb cyberfrauds: RBI

The Reserve Bank of India (RBI) has advised financial institutions to adopt a risk-based supervision and a "zero trust" approach to curb cyberfrauds. This directive underscores the central bank's growing concern over increasing digital payment frauds and cybersecurity threats in the financial sector. A risk-based approach tailors supervision to the specific risks faced by each entity, while a "zero trust" model assumes that no user, device, or network can be trusted by default, requiring verification for every access attempt. This proactive guidance aims to strengthen the cybersecurity posture of banks and financial institutions, enhance fraud detection mechanisms, and protect consumers from sophisticated cyberattacks, ensuring the integrity of the financial system.