All Prepaid Payment Instrument
System Providers, System Participants and
all other Prospective Prepaid Payment Instrument Issuers
Security and Risk Mitigation
measure - Technical Audit of Prepaid Payment Instrument issuers
With the withdrawal of legal
tender characteristics of existing ? 500/- and ? 1000/- Bank Notes (Specified
Bank Notes – SBN), the use of alternate modes of payment, specifically
e-wallets has gained momentum. The Reserve Bank has also notified special
measures for Prepaid Payment Instruments (PPIs) to facilitate adoption of
digital payments in a big way. While all efforts should continue to be made
by entities for on-boarding new customers and merchants, it needs to be
borne in mind that any kind of cyber security incident affecting the
digital channels/products, particularly at this juncture, may have
significant system-wide ramifications and act as a dampener for the
adoption of digital products by public at large.
2. As the rapid escalation in
e-payments may put significant pressure on the existing digital
infrastructure, it is imperative that the integrity of our digital
ecosystem is maintained by ensuring that they remain robust and fully
secure. Attention is drawn to the extant guidelines requiring authorised
entities to submit system audit reports from a CISA/DISA qualified auditor
on an annual basis (refer the links www.rbi.org.in/scripts/FS_Notification.aspx?Id=6177&fn=9&Mode=0 and www.rbi.org.in/scripts/FS_Notification.aspx?Id=6344&fn=9&Mode=0).
The scope of the System Audit includes evaluation of the hardware
structure, operating systems and critical applications, security and controls
in place, including access controls on key applications, disaster recovery
plans, training of personnel managing the systems and applications,
3. In view of the above, all
authorised entities/banks issuing PPIs in the country are advised to:
out a special audit by the empanelled auditors of Indian Computer Emergency
Response Team (CERT-In) on a priority basis and take immediate steps
thereafter to comply with the findings of the audit report. The list of
empanelled auditors is available on www.cert-in.org.in/PDF/Empanel_org.pdfThe
audit should cover compliance as per security best practices, specifically
the application security lifecycle and patch/vulnerability and change
management aspects for the system authorised and adherence to the process
flow approved by the Reserve Bank. Banks may also be guided by the circular DBS.CO/CSITE/BC.11/33.01.001/2015-16 on Cyber
Security Framework in Banks dated June 02, 2016.
appropriate measures on mitigating phishing attacks considering that the
new customers are likely to be first time users of the digital channels.
Safety and security best practices may be disseminated to the customers
additional measures dynamically depending upon the risk perception or
threats as they emerge.
4. A confirmation giving the
details of action plan, including the name and date of appointment of the
auditor may please be conveyed to Department of Payment and Settlement
System DPSS, CO at email by
December 21, 2016. Also, a senior functionary may be designated to monitor
the position on an ongoing basis and report the updates to us periodically
(1st compliance within 15 days and subsequent compliance on a monthly
basis). Banks may forward the compliance to the respective Senior
Supervisory Manager (SSM) and non- bank entities may forward to the
respective regional offices of DPSS.
5. The directive is issued under
Section 10(2) read with Section 18 of Payment and Settlement Systems Act
2007, (Act 51 of 2007).
(Nanda S. Dave)
Chief General Manager