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- Singapore Partners With Major Banks To Study Quantum Security
- Hong Kong Launches Sandbox To Accelerate AI Adoption In Financial Services
- India To Increase UPI Transaction Limit For Tax Payments
- Philippines Lifts Pause On Establishment Of New Digital Banks
- European Commission Opens New Consultations On eIDAS 2
- Russian Central Bank Issues Draft Directive On Money Transfer Security
Singapore Partners With Major Banks To Study Quantum Security
The Monetary Authority of Singapore (MAS) has partnered with DBS, HSBC, OCBC and UOB to study the application of Quantum Key Distribution (QKD) in financial services.
QKD can help financial institutions (FIs) protect the exchange of cryptographic keys to address the cybersecurity threats posed by quantum computing.
As noted by the MAS, quantum computing technology has developed rapidly and has demonstrated the potential to break commonly used cryptography and encryption algorithms.
The MAS and the participating banks will experiment with QKD solutions jointly provided by technology partners SPTel and SpeQtral.
A proof-of-concept sandbox will evaluate the viability, effectiveness and applicability of QKD to financial services.
The partners will also validate the security properties of QKD, by testing its ability to detect eavesdropping attempts and prevent unauthorised access or tampering of QKD transmissions.
Hong Kong Launches Sandbox To Accelerate AI Adoption In Financial Services
The Hong Kong Monetary Authority (HKMA) has partnered with local technology firm Cyberport to launch a Gen AI Sandbox for the financial services sector.
The sandbox aims to produce insights that will inform the HKMA and help to keep its best practice and guidance material on AI up-to-date with the latest technology developments.
Eddie Yue, chief executive of the HKMA, said the Gen AI Sandbox will allow banks to pilot novel Gen AI use cases within a risk-managed framework, supported by essential technical assistance and targeted supervisory feedback.
“Banks are encouraged to make full use of this resource to unlock the power of Gen AI in enhancing effective risk management, anti-fraud efforts and customer experience,” he said.
India To Increase UPI Transaction Limit For Tax Payments
The Reserve Bank of India (RBI) has confirmed that it will increase the limit on UPI transactions that are made for tax purposes.
Last week, RBI governor Shaktikanta Das confirmed that the transaction limit on tax payments via UPI be raised from ₹100,000 to ₹500,000.
Currently, the standard transaction limit on UPI is ₹100,000, although certain types of payment have higher transaction limits.
Das also said the RBI is considering a delegated payments facility on UPI. This would allow a second individual to be linked to a UPI account as a user, without having to link their own bank details to the account.
“This will further deepen the reach and usage of digital payments,” said Das.
Philippines Lifts Pause On Establishment Of New Digital Banks
The Bangko Sentral ng Pilipinas (BSP) has approved the lifting of a moratorium on the granting of new digital banking licences.
On January 1, 2025, the BSP will resume granting new digital banking licences, and will allow a maximum of ten digital banks to operate in the country.
Since the issuance of the Digital Banking Framework in December 2020, six digital banks have been operating in the Philippines, opening an opportunity for four more to join them.
Eli Remolona Jr., governor of the BSP, said the limit will allow the BSP to monitor developments in the sector and assess the impact of the entry of new players on the banking system.
He added that the granting of new digital bank licences also includes the conversion of an existing bank’s licence to digital bank licence.
European Commission Opens New Consultations On eIDAS 2
The European Commission has opened a selection of public consultations for the Implementing Acts under eIDAS 2, which lays the groundwork for interoperable digital identity solutions in the EU.
Stakeholders are invited to provide feedback on five separate consultations by September 9. The commission plans to adopt the Implementing Acts in the fourth quarter of 2024.
The consultations address key aspects of the European Digital Identity Wallets. One consultation focuses on certification requirements, including when member states need to establish national certification schemes to supplement European cybersecurity standards.
Another aims to ensure the proper implementation of protocols and interfaces, facilitating smooth data sharing and communication between wallet units.
Additionally, the commission is seeking feedback on rules to ensure wallet interoperability, enabling secure online cross-border identification and electronic signatures.
Another consultation targets lifecycle management of personal identification data and electronic attestations, covering issuance, verification, revocation and suspension to safeguard user data.
Russian Central Bank Issues Draft Directive On Money Transfer Security
The Central Bank of Russia (CBR) has published a draft directive aimed at enhancing information protection protocols in the national payment system.
Key provisions in the draft include mandatory implementation of top-tier information protection measures by money transfer operators and payment infrastructure service providers.
Additionally, the directive introduces stricter reporting deadlines for incidents and mandates ongoing monitoring and improvement of software and technology used in processing protected information.
Stakeholders are invited to submit their feedback on the draft by August 25, 2024.
