e-Banking is safe: experts

Kathmandu, Dec. 10: Experts have denied the possibility of security threat to the internet and mobile banking.

Their claim to the e-banking safety is based on the fact that there are a small number of e-banking users compared to ATM users with restriction on sending money to other country.

Besides, fewer banks have been providing the online banking service.

"Furthermore, the banks are regularly conducting the IT audit and vulnerability test. Awareness about the e-banking risks and challenges has been increased significantly in the last couple of years," said Parmeshwor Shrestha, head of digital banking at NIC Asia Bank.

He said that there were no fishing and farming in Nepalese banking sector in recent times.

Fishing and farming are two major techniques to steal vital information of the customers.

Obtaining customer's username, password and credit card details is fishing, and redirecting the users to a duplicate website by sending them links is farming. Some hackers send spyware to the computer of the user and steal username and password.

As the ATM machines were compromised and public's money was looted by foreign criminals by using sophisticated information and communication devices, there are growing concerns over the e-banking safety in Nepal.

Bobby Singh Gadtaula, assistant general manager of Sanima Bank, who also looks after electronic banking, said that the most of the banks adopting the internet-based banking or mobile banking, had been providing only 'view' options to their clients, and very few customers had been transferring funds through e-banking.

"However, if the device is compromised in mobile-banking, banks will not be aware of it until the customers informed it to the banks. In such cases, customer can lose amount from their bank account," he said.

In order to ensure safety to the ATM users, Sanima has recently introduced chip-based ATM cards while Nabil Bank has been using chips for the last couple of years.

But, the banks have to install new machines to facilitate the customers for transactions through chip-based cards.

Chief business officer of the Smart Choice Technologies (SCT) Pranaya Rajbhandari said that the e-banking was a multidimensional issue comprising prevention, detection and monitoring.

According to him, point of sales (POS) machines also could create security threats as customer's sign could authenticate the transaction.

Online business has created significant security risks in the international banking market but Nepal is yet to implement system for e-payment.

"Most of the online shopping hubs accept cash on delivery. Therefore, e-payment is not the security area in case of Nepal," said Rajbhandari.  

Assistant spokesperson of the Nepal Rastra Bank (NRB) Rajendra Pandit remarked that there were no security threats to e-banking in Nepal.

He said that banks had started IT Audit, and some international IT companies are interested to come to Nepal for the same.

According to the NRB data, by the end of the fiscal year 2015/16, more than 1,908 ATM machines of commercial banks, development banks and finance companies have been installed across the country.

The banks have issued 4.6 million debit cards, 52,014 credit cards and 82,797 prepaid cards. The number of mobile banking users has reached 1.7 million.

E-Banking scenario (by the end of FY 2015/16)

Services	Commercial Banks	Development Banks	Finance Companies	Total
Mobile banking users	1,604,578	133,561	16,427	1,754,566
Internet banking users	489,835	23,036	2,594	515,465
ATMs	1,661	230	17	1,908
Debit cards	4,142,390	479,318	35,417	4,657,125
Credit cards	52,014	-	-	52,014
Pre-paid cards	82,797	-	-	82,797

Source: Nepal Rastra Bank