Alert for Banks and Financials – RBI has issued a cyber threat notice to banks.

The Reserve Bank of India (RBI) has advised banks to prepare for cyber threats and strengthen security measures to prevent such risks, according to Moneycontrol, citing industry sources following the central bank’s most recent round of Cyber Security and Information Technology Examination (CSITE). The RBI also suggested action points where the inspection revealed weaknesses, it noted.

According to the report, one banker stated that the RBI performs a separate assessment to discover deficiencies in banks’ cyber security capabilities. This time, they met with us and provided a list of action points to fix issues.”

RBI deputy governor T Rabi Sankar had stated that the banking sector must be prepared for emerging cyber security concerns. He stated, “We need to think about customer convenience and other things, and we need to provide services,” and added that banks may need to totally upgrade their encrypted systems to identify and reduce the risks of artificial intelligence (AI) exploitation.

He added, “We also have to understand the issues with AI. And in order to crunch large amounts of data rapidly you would need to entirely rebuild your encrypted system.”

Alert for Banks and Financials as in recent years, there have been numerous cyber security threats.

The RBI’s warning comes after a surge in cyber security breaches in the banking system in recent years. According to a government response in Parliament, Indian banks reported 248 successful data breaches by hackers and miscreants between June 2018 and March 2022, with 41 reported by public sector banks and 205 by private sector banks. According to the statistics, foreign banks reported two cases.