Union Finance Minister Nirmala Sitharaman has said that Indian banks must adopt a more versatile and proactive approach to counter emerging artificial intelligence-driven cyber threats.
“Indian banks have largely remained free of any major cyber security incidents over the decades due to sustained digitisation, regular system upgrades, firewalls, and customer safety measures. This has been an ongoing exercise, and Indian banks have performed well, with no major incidents reported over the years,” she said.
However, she cautioned that the challenge posed by advanced AI is different and less understood.
“Digitisation is driving greater access and financial inclusion, especially in far-flung areas. But as banking becomes more technology-driven, we must ensure we do not lose touch with customers. The human element remains essential. True inclusion is achieved when digital efficiency and human engagement go hand in hand,” the Finance Minister added.
Sitharaman was speaking at the launch of a new State Bank of India office in Pune.
On the occasion, she said, “SBI is moving closer to its customers across Maharashtra by shifting key decision-making functions from Mumbai to Pune. This step reflects SBI’s commitment to being more responsive and aligned with the needs of a fast-growing economy, supporting the vision of Viksit Bharat by 2047.”
She further urged banks to onboard the best available cybersecurity professionals and specialised agencies to strengthen their defensive and monitoring capabilities, and to immediately report any suspicious activity to CERT-In and other authorities.
On Thursday, Sitharaman also chaired a high-level meeting with key stakeholders from the banking and technology sectors to assess potential risks posed by advanced AI models, particularly their ability to exploit software vulnerabilities in the financial ecosystem.
The meeting was held in coordination with Union Minister for Electronics and Information Technology Ashwini Vaishnaw. It was attended by senior officials from the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), Department of Financial Services (DFS), and the Indian Computer Emergency Response Team (CERT-In), along with Managing Directors and CEOs of major scheduled commercial banks.