Key Technical Controls in RBI Master Direction on IT Governance, Risk, Controls and Assurance Practices

The financial landscape is rapidly evolving, with technology playing an increasingly crucial role. In this dynamic environment, the Reserve Bank of India (RBI) has released the Master Direction on Information Technology Governance, Risk, Controls and Assurance Practices, effective from 1 April 2024. This comprehensive directive aims to strengthen the technological resilience of regulated entities in India. Following are the key aspects of this Master Direction, focusing on the applicable entities and the crucial technical controls it recommends:

Key Technical Controls as per RBI Master Direction for IT

The Master Direction outlines a series of technical controls that are essential for creating a secure and resilient IT environment. Let’s examine some of the key areas and the specific controls recommended:

1. IT Infrastructure & Services Management:

• Proactive Capacity Management: Regulated entities must proactively assess their IT capacity needs, ensuring their systems can handle current and projected future demands.
• Robust IT Service Management: Implementing a comprehensive framework for IT service management is vital for ensuring the operational resilience of the entire IT environment.
• Timely Technology Refresh: Entities need to establish a technology refresh plan to replace outdated hardware and software before they reach their end-of-support dates.

2. IT and Information Security Risk Management:

• Information Security and Cyber Security Policies: Entities must formulate comprehensive policies addressing information security, cyber security, and cyber crisis management.
• Vulnerability Assessments (VA) and Penetration Testing (PT): Regular VA and PT are mandated for critical information systems, particularly those with customer interfaces.
• Chief Information Security Officer (CISO): Appointing a CISO with adequate expertise is crucial for driving cyber security strategy and compliance.

3. Data Security and Integrity:

• Data Migration Controls: A documented data migration policy is required to ensure data integrity, completeness, and consistency during migration processes.
• Straight Through Processing (STP): Entities must implement STP for critical applications to prevent unauthorised data modification during transfer.

4. Access Control and Authentication:

• Multi-Factor Authentication: Entities are required to adopt multi-factor authentication for privileged users accessing critical information systems and for critical activities.
• Secure Teleworking Environment: Measures must be taken to ensure the security of systems used for teleworking and remote access.

5. Business Continuity and Disaster Recovery:

• Regular Disaster Recovery (DR) Drills: DR drills for critical information systems should be conducted at least every six months, with other systems tested based on risk assessment.
• Robust DR Architecture: Entities need to ensure their DR architecture and procedures are robust, enabling them to meet their defined Recovery Time Objective (RTO) and Recovery Point Objective (RPO).

A Step Towards Enhanced Cyber Resilience

These technical controls represent a significant step towards bolstering the cyber security posture and operational resilience of regulated entities in India’s financial sector. By adopting these controls, entities can proactively mitigate risks, safeguard sensitive information, and ensure the continuity of critical operations in the face of evolving cyber threats and technological disruptions.

CyberNX can assist Regulated Entities (REs) in conducting comprehensive gap assessments and achieving compliance with RBI Master Directions. Our services include implementing controls and automating compliance processes, creating dashboards, generating detailed reports, and more. Contact us today to streamline your RBI Master Direction compliance journey.