Financial Awareness - Risk, Stability & Emerging Finance
Why is ensuring cybersecurity considered a critical regulatory challenge for Indian financial regulators in the era of digital banking and fintech?
Why is ensuring cybersecurity considered a critical regulatory challenge for Indian financial regulators in the era of digital banking and fintech?
hard Q10 of 15
Step-by-Step Solution
Step 1: Understand cybersecurity importance
Digital banking and fintech increase transaction volumes and data exchange, raising cyber risk.Step 2: Analyze options
Increasing digital transactions expose systems to cyber threats and data breaches, making cybersecurity a critical regulatory challenge. Cybersecurity is not solely the responsibility of banks; regulators set frameworks and guidelines. Digital banking does not eliminate physical branches entirely. Cybersecurity concerns remain significant even in regulated institutions.Step 3: Explain why other options are wrong
Responsibility is shared, physical branches still exist, and cybersecurity risks are high despite regulation.Final Answer:
Because increasing digital transactions expose systems to cyber threats and data breaches → Option BQuick Check:
Cybersecurity challenge = digital transactions increase cyber threats ✅
Quick Trick: Link digital growth with rising cybersecurity risks.
Common Mistakes:
- Assuming cybersecurity is only banks' responsibility or risks are minimal.
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