FM directs banks to remain fully alert to prevent cyber security breaches

Business Standard

09-05-2025

Amid the ongoing conflict with Pakistan, Union Finance Minister Nirmala Sitharaman on Friday directed banks and other financial institutions to ensure that all digital and core banking infrastructure is fully firewalled and monitored round the clock to prevent breaches or hostile cyber activity.
Sitharaman also instructed banks to ensure that citizens and businesses do not face service disruptions under any circumstances. Priority must be given to seamless cash availability at ATMs, uninterrupted UPI and internet banking services, and continued access to essential banking facilities.
'The Union Finance Minister directed all banks to remain fully alert and prepared to deal with any eventuality or crisis, ensuring uninterrupted access to banking and financial services for citizens across the country, especially in border areas. Sitharaman remarked that banking services, both physical and digital, must function without disruption and glitches, and emergency protocols should be updated and tested to handle any arising contingencies,' the Ministry of Finance said in a statement.
Sitharaman chaired a high-level meeting with the managing directors and chief executive officers of public and private sector banks and insurance companies, in light of emerging security concerns arising from tensions at the border.
Senior officials from the Department of Financial Services (DFS), the Indian Computer Emergency Response Team (CERT-In), the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (IRDAI), and the National Payments Corporation of India (NPCI) were also present.
'The Union Finance Minister instructed banks to designate two senior officials at their headquarters—one to report all cyber-related matters and the other to oversee operational matters, including the functioning of bank branches and ATM cash availability. These officials should report any incidents to CERT-In or relevant agencies and to the DFS on a real-time basis,' the ministry said.
'Banks were also asked to coordinate in real time with the RBI, CERT-In and other relevant government agencies to ensure robust and agile information exchange and incident response.'
The Finance Minister also directed insurance companies to ensure timely claim settlements and uninterrupted customer service. She asked sponsor banks to ensure that Regional Rural Banks (RRBs) are well-supported and hand-held through any operational issues during this period.
During the meeting, bank MDs and CEOs informed the Finance Ministry that cybersecurity measures have been reinforced across the banking system. Anti-DDoS (Distributed Denial-of-Service) systems have been implemented to protect against large-scale cyber-attacks.
'To guarantee institutional readiness, mock drills have been held encompassing cybersecurity and disaster recovery scenarios at the highest levels. Phishing attempts are being actively monitored, and internal alerts have been issued to staff to increase awareness,' the ministry stated.
Bank officials said their Security Operations Centres (SOCs) and Network Operations Centres are fully operational and on high alert. These centres are working in close coordination with CERT-In and the National Critical Information Infrastructure Protection Centre (NCIIPC), enabling real-time data sharing and threat tracking.
During the meeting, the Finance Minister expressed concern about the safety of bank employees and their families working in branches near border areas. She directed banks to ensure their adequate protection through coordination with local security agencies.