Kathmandu, Sept. 11 -- Nepal Rastra Bank on Tuesday asked banks and financial institutions to implement precautionary measures to minimise the possible threat on their cybersecurity infrastructure after the recent ATM hacking exposed significant security vulnerabilities in the banking system.

Nearly two weeks ago, the police arrested four Chinese citizens who were involved in stealing cash from ATMs by using cloned debit cards to breach processing systems. The incidents exposed significant security vulnerabilities in the Nepali banking system, including a failure to conduct periodic security audits, comply with the latest technology and invest adequately in digital security.

[Read: Millions stolen by ATM hackers exposes vulnerability of...