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Banks have requested Government to extend Time for implementing SEBI guidelines on CSCRF


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Banks have urged the government to extend the deadline for implementing the Securities and Exchange Board of India’s (SEBI) Cybersecurity and Cyber Resilience Framework (CSCRF) beyond the current deadline of April 1, 2025. They are requesting an extension until June 2025, citing the need for additional time to comply with the new regulations.

Banks Approach Finance Ministry

According to sources, banks made a formal request to the Finance Ministry earlier this month, asking it to take up the matter with SEBI. “Banks want the deadline extended to June,” a senior bank executive confirmed.

What is CSCRF?

The Cybersecurity and Cyber Resilience Framework (CSCRF) is a set of guidelines issued by SEBI to strengthen cybersecurity among market participants. These include:

  • Stockbrokers
  • Depositories
  • Asset Management Companies (AMCs)
  • Mutual Funds
  • Other financial intermediaries

The framework mandates strict data protection and security protocols across various domains, including IT services, Software-as-a-Service (SaaS) solutions, hosted services, data classification, and cybersecurity audits.

Why Are Banks Seeking More Time?

Banks play a crucial role in the securities market as brokers, investment bankers, and intermediaries. They argue that certain aspects of the framework require further analysis before implementation.

  • Gap Analysis Study: Banks claim they need time to identify and address gaps in their existing cybersecurity measures.
  • Data Localisation Issues: One of the major concerns is data localisation, which has been temporarily put on hold. Foreign banks have raised specific concerns with both the Reserve Bank of India (RBI) and SEBI, requesting a more practical approach to data storage rules.

SEBI’s Response

The framework was initially announced through a circular on August 20, 2024. However, SEBI acknowledged concerns about data localisation and decided to keep those provisions on hold until further notice.

Banks are now waiting for a response from the government regarding their request for an extension. Meanwhile, the April 1, 2025 deadline remains in place unless SEBI agrees to a further extension.

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