Public sector banks are pulling their act together and aiming at getting cyber insurance policies

Public sector banks as now looking to cover themselves against damages caused by cyber, in the wake of an increasing number of customers adopting digital transactions. The banks are aiming at covering themselves against hacking attacks that include data loss and damages caused by the loss of the data. The move comes immediately after RBI ruled that every bank must report incidents related to cyber breach or frauds around digital transactions. Major private players are already covered by insurance, and it is about time for state-owned public sectors bank to enroll in these policies. Public-sector banks are knowing for their lax security measures as they lag behind in incorporating the latest technology to secure the customer data and critical operation systems. Demonetisation pushed the banks into introducing internet facilities along with a renewed focus on digital services offered by the banks. The banks are trying to get more insurance cover for costs related to forensics and cyber experts for investigations in the case of a breach. According to a report by Gadgets Now, banks are also looking to insure the cost of replacing all the plastic cards of customers in the case cards get infected. Banks reimburse small losses for individuals regardless of who was responsible for the loss but in case of loss of large sum of money, the costs involved can be related to legal measures, such as litigation.