At a post-inauguration press briefing following the launch of a new State Bank of India office in Pune, Union Finance Minister Nirmala Sitharaman called on Indian banks to adopt a more agile and forward-looking approach to counter emerging cyber threats driven by artificial intelligence.
Her remarks came after a high-level review meeting held on Thursday with Union Minister for Electronics and Information Technology Ashwini Vaishnaw, along with representatives from the RBI, NPCI, CERT-In, and heads of scheduled commercial banks. The meeting focused on assessing risks posed by advanced AI systems that could potentially be misused to exploit software vulnerabilities.
Sitharaman noted that Indian banks have, over the years, largely avoided major cybersecurity breaches, crediting sustained digitisation, regular system upgrades, firewalls, and strong customer protection protocols.
“This has been an ongoing exercise, and Indian banks have done very well for themselves in that there has not been a major incident over decades,” she said. However, she cautioned that the evolving nature of AI-driven threats presents a new and less predictable challenge. “What we’ve had, and what has proven our ability to be careful and protective of customers, may not be sufficient going forward. Those measures must continue and improve, but we also need something new—far more versatile—to counter emerging threats,” she added.
The minister said the Ministry of Electronics and Information Technology is engaging with global governments and technology firms to better understand the evolving cybersecurity landscape and assess India’s preparedness.
Following the meeting, which was also attended by DFS Secretary M. Nagaraju and CERT-In Director General Dr. Sanjay Bahl, banks have been asked to collaborate under an institutional mechanism led by the Indian Banks’ Association, headed by the State Bank of India Chairman. In the coming weeks, banks will evaluate investment requirements, explore new technologies, and examine ways to deploy AI tools to defend against AI-enabled cyber risks.
Sitharaman clarified that this is not the creation of a new committee, but an IBA-led coordination process aimed at identifying vulnerabilities and reviewing dependencies on technology vendors. She also urged banks to strengthen their cybersecurity talent pool, engage specialised agencies, and ensure prompt reporting of suspicious activity to CERT-In and other authorities. A real-time threat intelligence sharing framework among banks and agencies was also emphasised.
On the broader economic front, Sitharaman acknowledged the impact of geopolitical tensions in West Asia, particularly disruptions in the Strait of Hormuz, which have contributed to rising crude oil prices. “These are constantly evolving challenges. They cannot all be addressed in a single framework; each requires a contextual response,” she said.
She further clarified that issues such as LPG supply monitoring, overseen by a ministerial group led by Defence Minister Rajnath Singh, and support measures for exporters affected by US tariffs, are being handled through separate policy mechanisms.
Reiterating the government’s long-term vision, Sitharaman said the terms of reference for the banking sector’s roadmap to 2047 have been intentionally kept broad, allowing the committee to recommend the future structure and scale of India’s banking system.
(With inputs from ANI)