1️⃣ WHAT IS RBI CYBERSECURITY FRAMEWORK?
🔹 Simple Definition
RBI Cybersecurity Framework is a set of mandatory guidelines issued by the Reserve Bank of India to ensure strong protection, monitoring, and response to cyber risks in banks and financial institutions.
➡ It ensures Confidentiality, Integrity & Availability (CIA) of digital banking systems.
2️⃣ OBJECTIVES OF THE FRAMEWORK
✔ Protect digital banking & payment systems
✔ Prevent cyber frauds (UPI/IMPS/RTGS/ATM/card frauds)
✔ Ensure secure technology architecture & vendor management
✔ Continuous monitoring & early fraud detection
✔ Protect customer data & privacy
✔ Ensure quick incident reporting and response
3️⃣ KEY COMPONENTS OF RBI CYBERSECURITY FRAMEWORK
| Component | Explanation |
|---|---|
| Cyber Risk Governance | Board-level oversight, IT strategy, cybersecurity policies |
| Security Controls & Access Management | Multi-Factor Authentication, encryption |
| Incident Response & Recovery Plan | Rapid investigation & recovery |
| Cyber Crisis Management Plan (CCMP) | Handling large-scale cyber attacks |
| Security Operations Centre (SOC) | Continuous real-time monitoring |
| VAPT (Vulnerability Assessment & Penetration Testing) | Regular testing to find weaknesses |
| Audits & Compliance Reporting | Periodic review to RBI |
| Vendor / Third-party Risk Management | Secure outsourcing & fintech collaboration |
4️⃣ PHASE-WISE IMPLEMENTATION
| Phase | Key Deliverable |
|---|---|
| Prevention | Firewalls, MFA, encryption, secure architecture |
| Detection | SOC, real-time threat intelligence, AI/ML monitoring |
| Response | CCMP, incident reporting to RBI |
| Recovery | Restoring services & customer protection |
5️⃣ IMPORTANT INITIATIVES UNDER RBI CYBERSECURITY FRAMEWORK
| Initiative | Purpose |
|---|---|
| Cyber Security & IT Examination Cell | Supervises cybersecurity practices of banks |
| Data Localization Policy | Customer data must be stored in India |
| DPSS – Digital Payment Security Controls (2021) | Secure UPI, IMPS, NEFT, RTGS |
| Central Fraud Registry | Helps banks share fraud data |
| Cyber Swachhta Kendra | Malware detection & cleanup tools |
| CERT-In collaboration | National cyber incident management |
| NPCI FRM System | Real-time fraud monitoring for UPI |
6️⃣ BENEFITS OF RBI CYBERSECURITY FRAMEWORK
✔ Strengthens digital banking trust and customer confidence
✔ Reduces financial crimes & data breaches
✔ Ensures uninterrupted secure banking operations
✔ Helps compliance with global cybersecurity standards
✔ Improves monitoring and response to cyber threats
7️⃣ RISKS & LIMITATIONS
| Limitation | Reason |
|---|---|
| Cyber threats evolve faster than defence systems | Constant upgrade required |
| Dependent on customer awareness | Social engineering attacks still successful |
| Implementation cost high | Small banks & co-operatives struggle |
| Complex vendor management | Fintech integration risk |
8️⃣ CYBER THREATS ADDRESSED
- Phishing, vishing, smishing
- Malware / ransomware attacks
- SIM swap & ATO (Account Takeover)
- UPI fraud / QR code scams
- Mobile banking cloning
- DDoS attacks on banking infrastructure
- ATM jackpotting
- Insider fraud & privilege misuse
🔥 MOST IMPORTANT
- RBI Cybersecurity Framework implemented first in 2016
- Board of Directors responsible for Cybersecurity Governance
- SOC = Security Operations Centre
- CCMP = Cyber Crisis Management Plan
- DPSS Guidelines 2021 → Digital Payment Security Controls (UPI / IMPS security)
- CERT-In = National cyber emergency response agency
- Reporting cyber fraud hotline = 1930
- Zero Trust Architecture = “Never trust, always verify”
- VAPT = Vulnerability Assessment & Penetration Testing
- NPCI FRM → UPI fraud monitoring
🧠 MEMORY TRICKS / ONE-LINE FORMULAS
| Mnemonic | Meaning |
|---|---|
| CIA Model | Confidentiality + Integrity + Availability |
| 3Ds of Cybersecurity | Detect – Defend – Disable threats |
| SCORE | Security, Compliance, Oversight, Response, Encryption |
| SOC = Bank Cyber Control Room |
📌 VISUAL SUMMARY
| Topic | Key Points | Example |
|---|---|---|
| Cybersecurity Framework | Protection + Monitoring + Compliance | SOC, MFA, encryption |
| DPSS Controls 2021 | Secure UPI & digital payments | 2FA & fraud alerts |
| CCMP | Plan for cyber crisis | Large-scale attack response |
| CERT-In | National cyber response | Attack alerts |
| NPCI FRM | UPI fraud monitoring | Suspicious transactions |
📘 CHAPTER-WISE SUMMARY
Chapter 1 – Introduction
- RBI created a cybersecurity governance model to protect digital banking & payments
Chapter 2 – Components
- Board Governance, SOC, CCMP, VAPT, MFA, Data Protection
Chapter 3 – Digital Payment Protection
- DPSS Guidelines 2021, NPCI FRM, real-time monitoring
Chapter 4 – Support Systems
- CERT-In, Cyber Swachhta Kendra, Central Fraud Registry
Chapter 5 – Prevention, Detection & Response Model
- Secure architecture → monitoring → restoration
⏳ 2-MINUTE QUICK REVISION SHEET
✔ RBI Cybersecurity Framework 2016
✔ Protects UPI, IMPS, NEFT, RTGS, ATM, Card, Mobile banking
✔ SOC, MFA, VAPT, CCMP, Encryption = Core Tools
✔ DPSS Digital Payment Security Controls 2021 = key update
✔ CERT-In, Cyber Swachhta Kendra, NPCI FRM
✔ Cyber fraud helpline 1930
✔ CIA model = Confidentiality + Integrity + Availability
✔ Zero Trust Principle
✔ Data localization mandate
MOST IMPORTANT MCQs – RBI CYBERSECURITY FRAMEWORK
📍 CHAPTER 1: BASICS & GOVERNANCE (6 MCQs)
Q1. The primary objective of RBI’s Cybersecurity Framework for banks is to:
a) Increase branch expansion in rural areas
b) Regulate priority sector lending
c) Strengthen resilience of IT systems against cyber threats
d) Promote only cash-based transactions
Answer: c) Strengthen resilience of IT systems against cyber threats
Explanation: The framework focuses on protection, detection and response to cyber risks in banks. 👉 (HIGHLY IMPORTANT)
Q2. In RBI’s Cybersecurity Framework, the ultimate responsibility for cyber risk management in a bank lies with the:
a) Chief Information Security Officer (CISO)
b) IT Department
c) Board of Directors
d) Branch Manager
Answer: c) Board of Directors
Explanation: RBI clearly states that the Board has overall responsibility for cybersecurity governance. 👉 (HIGHLY IMPORTANT)
Q3. Which of the following is NOT a key pillar of RBI’s Cybersecurity Framework?
a) Governance & Oversight
b) Cyber Risk Management
c) Cyber Incident Response
d) Gold Reserve Management
Answer: d) Gold Reserve Management
Explanation: Gold reserve management is unrelated to cybersecurity.
Q4. As per RBI’s Cybersecurity guidelines, banks must adopt which approach towards cyber risk?
a) One-time compliance approach
b) “Set and forget” approach
c) Continuous and dynamic risk-based approach
d) Paper-based manual approach
Answer: c) Continuous and dynamic risk-based approach
Explanation: Cybersecurity is to be treated as an ongoing process, not one-time.
Q5. The term “Cyber Resilience” in RBI guidelines refers to a bank’s ability to:
a) Increase deposits after a cyberattack
b) Withstand, respond to, and recover from cyber incidents
c) Reduce employee strength using automation
d) Eliminate all manual operations
Answer: b) Withstand, respond to, and recover from cyber incidents
Explanation: Resilience includes both protection and recovery capability.
Q6. RBI’s Cybersecurity Framework is primarily applicable to:
a) Only foreign banks
b) Only cooperative banks
c) All scheduled commercial banks (including private, public, foreign)
d) Only RRBs
Answer: c) All scheduled commercial banks (including private, public, foreign)
Explanation: Framework initially targeted scheduled commercial banks, later extended progressively to other entities.
📍 CHAPTER 2: KEY COMPONENTS & TECHNICAL CONTROLS (7 MCQs)
Q7. Which of the following is a key technical component of RBI Cybersecurity Framework for monitoring threats in real time?
a) Customer Call Centre
b) Security Operations Centre (SOC)
c) HR Training Cell
d) Currency Chest
Answer: b) Security Operations Centre (SOC)
Explanation: SOC monitors, detects, and responds to cyber incidents 24×7. 👉 (HIGHLY IMPORTANT)
Q8. VAPT, as mandated under RBI’s cybersecurity instructions, stands for:
a) Virtual Asset Protection Technique
b) Vulnerability Assessment and Penetration Testing
c) Verified Audit of Payment Transactions
d) Value-added Processing Technology
Answer: b) Vulnerability Assessment and Penetration Testing
Explanation: VAPT is used to identify and fix security weaknesses.
Q9. Which of the following controls is most directly related to preventing unauthorized access under RBI Cybersecurity guidelines?
a) Asset-liability management
b) Access control & authentication (including MFA)
c) Branch expansion policy
d) Interest rate corridor
Answer: b) Access control & authentication (including MFA)
Explanation: Strong authentication is a core access security measure.
Q10. “Least Privilege” principle under RBI Cybersecurity Framework implies:
a) Employees can access all systems at all times
b) Users are given only minimum access required for their role
c) Only senior management can access systems
d) Access rights never change
Answer: b) Users are given only minimum access required for their role
Explanation: This reduces misuse or compromise of excess privileges.
Q11. Encryption recommended by RBI for critical data and communication mainly helps in ensuring:
a) Profitability
b) Confidentiality and integrity of data
c) Faster customer onboarding
d) Lower CRR requirement
Answer: b) Confidentiality and integrity of data
Explanation: Encryption prevents unauthorized reading or tampering.
Q12. Under RBI’s Cybersecurity instructions, which type of testing must banks conduct regularly on critical applications such as Internet Banking, Mobile Banking, UPI?
a) Load testing only
b) Vulnerability Assessment & Penetration Testing
c) User interface testing only
d) Functional testing only
Answer: b) Vulnerability Assessment & Penetration Testing
Explanation: VAPT is mandatory for critical payment & banking applications. 👉 (HIGHLY IMPORTANT)
Q13. Which among the following is NOT a direct technical requirement of the RBI Cybersecurity Framework?
a) Firewalls & Intrusion Detection Systems
b) Multi-factor authentication
c) Proper hedging of forex exposures
d) Patch and vulnerability management
Answer: c) Proper hedging of forex exposures
Explanation: This is treasury risk, not cyber risk.
📍 CHAPTER 3: DIGITAL PAYMENT SECURITY & CUSTOMER PROTECTION (6 MCQs)
Q14. RBI’s “Digital Payment Security Controls” guidelines (issued through DPSS) are mainly aimed at securing:
a) Only cash transactions
b) Non-digital deposits
c) Internet/Mobile Banking, UPI, cards and other digital payment products
d) Only export transactions
Answer: c) Internet/Mobile Banking, UPI, cards and other digital payment products
Explanation: DPSS guidelines focus on end-to-end security of digital payments. 👉 (HIGHLY IMPORTANT)
Q15. Under RBI Cybersecurity and Digital Payment Security guidelines, banks must ensure that customers are:
a) Encouraged to share OTP with RM
b) Educated regularly about phishing, vishing and fraud risks
c) Prevented from using mobile banking
d) Forced to close UPI ID
Answer: b) Educated regularly about phishing, vishing and fraud risks
Explanation: Customer awareness is a mandatory part of cyber protection.
Q16. In case of unauthorized electronic transactions, RBI guidelines on “Limited Liability of Customers” primarily aim to:
a) Put full loss on customer always
b) Fix liability only on bank staff
c) Balance and limit customer loss if promptly reported
d) Ignore small-value frauds
Answer: c) Balance and limit customer loss if promptly reported
Explanation: Liability depends on customer’s negligence and reporting time.
Q17. NPCI’s Fraud Risk Management (FRM) system, which integrates with bank systems, mainly helps in:
a) Printing cheque books
b) Early detection and blocking of fraudulent UPI/IMPS transactions
c) Opening new deposit accounts
d) Maintaining cash reserve ratio
Answer: b) Early detection and blocking of fraudulent UPI/IMPS transactions
Explanation: FRM supports real-time transaction risk checks.
Q18. As per RBI’s cyber and payment security practices, banks should use which factor combination for authenticating high-risk transactions?
a) Only password
b) Password + OTP / PIN + device / biometric factor
c) Only customer name
d) Only mobile number
Answer: b) Password + OTP / PIN + device / biometric factor
Explanation: Multi-Factor Authentication (MFA) is strongly recommended/mandated.
Q19. Under RBI Cybersecurity and complaint handling framework, customers can also report online frauds through national helpline:
a) 1090
b) 1930
c) 1818
d) 1553
Answer: b) 1930
Explanation: 1930 is the national cyber fraud helpline. 👉 (HIGHLY IMPORTANT)
📍 CHAPTER 4: INCIDENT RESPONSE, REPORTING & COORDINATION (6 MCQs)
Q20. “Cyber Crisis Management Plan (CCMP)” in RBI Cybersecurity Framework refers to:
a) Plan for cash shortage
b) Plan to handle sudden interest rate hike
c) Organised response plan to manage major cyber incidents
d) Plan to manage staff transfers
Answer: c) Organised response plan to manage major cyber incidents
Explanation: CCMP defines roles, actions and escalation for cyber crises. 👉 (HIGHLY IMPORTANT)
Q21. As per RBI norms, banks must report significant cyber incidents to RBI:
a) Once in a year
b) Only if loss exceeds ₹10 crore
c) Within a prescribed short time frame after detection
d) Only if customer complains
Answer: c) Within a prescribed short time frame after detection
Explanation: Timely reporting helps supervisory review & coordination.
Q22. Coordination with which national agency is important under RBI’s Cybersecurity Framework for handling large cyber incidents?
a) IRDAI
b) TRAI
c) CERT-In (Computer Emergency Response Team – India)
d) FSSAI
Answer: c) CERT-In (Computer Emergency Response Team – India)
Explanation: CERT-In is the national nodal agency for cyber incidents.
Q23. Periodic cyber audit and independent assessment, as mandated by RBI, is required primarily to:
a) Check profitability of the bank
b) Ensure effectiveness of cyber controls and compliance
c) Review employee dress code
d) Maintain branch timings
Answer: b) Ensure effectiveness of cyber controls and compliance
Explanation: Independent review validates the robustness of controls.
Q24. In RBI’s Cybersecurity instructions, third-party and vendor risk management is important because:
a) Vendors run all branches
b) Outsourced IT services can be a potential cyber weak point
c) Vendors decide CRR and SLR
d) Vendors control bank interest rates
Answer: b) Outsourced IT services can be a potential cyber weak point
Explanation: Fintech, cloud, and IT vendors must also follow strong security.
Q25. The overall philosophy of RBI’s Cybersecurity Framework for banks can be best summarized as:
a) “Technology first, risk later”
b) “Comply now, think later”
c) “Security by design, defence-in-depth & continuous monitoring”
d) “Only manual controls are sufficient”
Answer: c) “Security by design, defence-in-depth & continuous monitoring”
Explanation: RBI stresses layered security and ongoing vigilance. 👉 (HIGHLY IMPORTANT)