Volume : 5, Issue : 9, September - 2016

Future and Challenges of Information Security & Operational Risks in Payment Banks

Shobhit Mehta

Abstract :

<p>&nbsp;Payment Banks are the recent innovation echoing the thoughts bankers have constantly endeavored - to develop new products which are suitable for everyone. On 19th Aug 2015, the RBI announced 11 approvals for Payment Banks, a stripped down version of a full service bank which is designed to reach people outside the span of formal banking services. In the present highly competitive banking; which demands evolving strategies to promote interest of all stakeholders, the need to cut costs in its product &amp; services; how are they going to optimize the Operational Risk processes mandated for opening new full-service bank&rsquo;s structure? The solution therefore has been to incorporate processes through diverse set of tools and procedures - such as optimizing the Risk and Control Assessments (R&amp;CA) processes, highlighting KPIs in the early stage of launch, without compromising with the promise to reach people more effectively and securely through technological advancements. This paper focuses on the likely banking revolution in the country and the Operational Risks associated with establishment of these banks.</p>