Banks Seek Extension to Implement Cybersecurity Framework

Banks Reach Out to Government for Deadline Extension

Banks have reached out to the government, seeking a further extension to the deadline for implementing the Securities and Exchange Board of India’s (Sebi) Cybersecurity and Cyber Resilience Framework (CSCRF). The deadline was initially set for January 1, 2025, but lenders are now calling for a further extension until June, citing the need for more time to comply with the proposed provisions.

Background on CSCRF

The CSCRF is a set of guidelines issued by Sebi to strengthen cybersecurity of market participants, including stockbrokers, depositories, asset management companies, mutual funds, and other intermediaries. It mandates robust data protection and security protocols across areas including IT services, software-as-a-service (SaaS) solutions, hosted services, classification of data, audit for software solutions, applications, and products used by regulated entities (REs).

Banks’ Concerns

Banks, which operate in the securities market as brokers, investment bankers, and other intermediary roles, have communicated to the government that some areas require a gap analysis study to identify and implement necessary measures. One of the biggest constraints is the data localisation issue, which has been put on hold for now.

Foreign Banks’ Concerns

Foreign banks have raised concerns both with the Reserve Bank of India and Sebi, seeking a more workable solution for the issues. The banks expect other issues to be addressed as well.

Background on the Framework

The framework was first announced through a circular issued on August 20, 2024. The regulator said it felt the need for further consultations on the provisions of data localisation, based on feedback from stakeholders. "Accordingly, the guidelines and provisions with regard to data localisation have been kept in abeyance until further notification," it said.

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Published On Jan 29, 2025 at 10:41 AM IST

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