The Pension Fund and Regulatory Development Authority (PFRDA), India’s pension fund regulator, has established a standing committee aimed at addressing cyber security challenges. This step is part of the authority’s obligation to protect pension subscribers’ interests. The authority recognises the importance of staying abreast with technological advancements and cyber security issues, and so, the ‘Information Systems and Technology and Cyber Security’ committee was formed.
Overview of the New Committee
The newly-developed committee on ‘Information Systems and Technology and Cyber Security’ will be tasked with recommending measures to ensure PFRDA’s technology aligns with the best industry practices. They will provide guidance regarding the development of Management Information Systems (MIS), supervisory, and regulatory platforms. These platforms will be used within the Authority to improve the efficient execution of responsibilities under the PFRDA Act.
In addition to monitoring cyber securities, the committee will also guide PFRDA on new opportunities and threats associated with financial technologies and regulatory technologies. With this two-pronged approach, the committee aims to ensure that PFRDA is not only secure but also up-to-date with relevant technological advancements.
About Pension Fund and Regulatory Development Authority (PFRDA)
The PFRDA is a statutory body, established under an Act of Parliament. Its main function is to promote income security for elderly citizens by establishing, developing, and regulating pension funds. It is also responsible for protecting the interests of subscribers to pension fund schemes.
The Authority carries out these functions through the appointment of various intermediary agencies, including Pension Fund Managers, Central Record Keeping Agency (CRA), among others. PFRDA not only develops, promotes, and regulates the pension industry under the National Pension System but also administers the Atal Pension Yojana.
The Necessity of Cyber Security Measures in the Pension Sector
Given the considerable amount of sensitive data handled within the pension sector, it is crucial to maintain rigorous cyber security measures. The formation of this committee will help to ensure that the PFRDA remains vigilant against potential cyber threats, protecting the sensitive information of pension subscribers.
Also, in an era that is increasingly reliant on digital technology, pension funds must adapt to survive. By aligning with best industry practices and exploring new opportunities in financial and regulatory technologies, PFRDA can ensure a secure and prosperous future for India’s pensioners.