Precaution to be taken by Bank for internet banking
Compared with other forms/channels of banking activities, Internet banking depends greatly on the integrity or trust in the confidentiality of customer data and on the availability of the system. In this context, there should be in place appropriate redundancy and fallback options, as well as disaster recovery procedures. In the case of Internet banking involving payments or funds transfers, nonrepudiation and integrity of the transactions are essential attributes. In such cases, the review of Internet banking should address the effectiveness of the Internet banking system controls in assuring nonrepudiation and integrity. Due attention should be given to them while evaluating the availability of Internet banking solutions, especially if the continuity is based on cross-border processing, because it might infringe a regulation or might run counter to compliance with bank regulations.
