{"id":372529,"date":"2026-09-24T21:09:17","date_gmt":"2026-09-24T15:39:17","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=372529"},"modified":"2026-09-24T21:09:17","modified_gmt":"2026-09-24T15:39:17","slug":"cyber-resilience-in-banking-sector","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/cyber-resilience-in-banking-sector\/","title":{"rendered":"Cyber resilience in banking sector"},"content":{"rendered":"

Source: <\/b>The post<\/span> \u201cCyber resilience in banking sector\u201d <\/b>has been created based on <\/span>“Cyber resilience in banking sector\u201d<\/b> published in \u201c<\/span>Business Line<\/b>\u201d on 24th September 2026.<\/span><\/p>\n

UPSC Syllabus: GS-3- Economy\u00a0<\/b><\/p>\n

Context: <\/b>India\u2019s banking sector is increasingly dependent on <\/span>digital infrastructure, fintechs, technology providers and third-party service providers<\/b>. The emergence of AI-enabled and agentic cyberattacks has increased the scale, speed and sophistication of cyber threats, requiring a shift from merely preventing attacks to building <\/span>sector-wide cyber resilience<\/b>.<\/span><\/p>\n

Emerging challenges<\/b><\/h2>\n
    \n
  1. AI-enabled attacks:<\/b> Agentic AI models can autonomously identify vulnerabilities, reducing the time, cost and technical expertise required by attackers.<\/span><\/li>\n
  2. Expanded attack surface:<\/b> Banks are interconnected with <\/span>fintechs, NBFCs, technology providers and other third parties<\/b>, creating vulnerabilities beyond individual institutions.<\/span><\/li>\n
  3. Systemic impact:<\/b> The <\/span>2024 ransomware attack on C Edge Technologies<\/b>, a core technology provider, temporarily disrupted payment services across about <\/span>300 cooperative and rural banks<\/b>, affecting ATM withdrawals and UPI transactions.<\/span><\/li>\n
  4. Asymmetric cyber risk:<\/b> An attacker needs to exploit only <\/span>one vulnerability<\/b>, whereas financial institutions must protect numerous interconnected systems.<\/span><\/li>\n
  5. Weak AI-risk preparedness:<\/b> The RBI\u2019s FREE AI Committee Report found that only <\/span>one-fourth of respondents<\/b> had formal processes for AI-related incidents or failures. Among 127 entities using AI, only <\/span>14% conducted regular audits, 18% maintained audit logs and 14% conducted real-time performance monitoring<\/b>.<\/span><\/li>\n
  6. Uneven technological capacity:<\/b> Banks, NBFCs and microfinance institutions differ significantly in their technological maturity, operational capacity and financial resources.<\/span><\/li>\n<\/ol>\n

    Measures to strengthen cyber resilience<\/b><\/h2>\n
      \n
    1. Real-time information sharing:<\/b> The RBI should operationalise real-time sharing of cyberattack, near-miss and third-party incident information among financial institutions through <\/span>CSIRT-Fin<\/b>.<\/span><\/li>\n
    2. Non-punitive reporting:<\/b> Confidential and non-punitive incident reporting can encourage institutions to report vulnerabilities and near-misses, similar to practices in aviation safety.<\/span><\/li>\n
    3. Create an AI cyber-risk catalogue:<\/b> Collective intelligence should be used to develop a common database of <\/span>AI-enabled cyberattack scenarios, attack vectors, potential impacts and mitigation strategies<\/b>.<\/span><\/li>\n
    4. Common resilience standards:<\/b> Establish minimum, non-negotiable cybersecurity standards across <\/span>banking, securities, pensions and insurance<\/b>, irrespective of institutional size.<\/span><\/li>\n
    5. Strengthen regulatory frameworks:<\/b> The RBI\u2019s <\/span>Model Risk Management guidance<\/b> and <\/span>Cybersecurity, Technology: Risk, Resilience and Assurance Framework Directions, 2026<\/b> should be implemented effectively, with lessons from incidents, tests and drills continuously incorporated.<\/span><\/li>\n
    6. Improve basic cyber hygiene:<\/b> Strong authentication, access controls, audit logs, continuous monitoring, employee awareness and regular stress testing should remain the foundation of cyber resilience.<\/span><\/li>\n<\/ol>\n

      Conclusion:<\/b> AI is changing cyber risk from an institution-specific problem into a <\/span>sector-wide systemic risk<\/b>. Therefore, India needs an ecosystem-based approach centred on <\/span>real-time information sharing, collective intelligence, common resilience standards and continuous learning<\/b>. The RBI can thereby ensure that financial institutions are not merely prepared to prevent attacks but are capable of <\/span>withstanding, containing and recovering from them<\/b>.<\/span><\/p>\n

      Question:<\/b> Artificial Intelligence (AI)-enabled cyberattacks are creating new vulnerabilities for India\u2019s banking and financial sector. Discuss the challenges posed by such attacks and suggest measures to strengthen cyber resilience in the financial sector.\u00a0<\/span><\/p>\n

      Source: <\/b>Business Line<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

      Source: The post \u201cCyber resilience in banking sector\u201d has been created based on “Cyber resilience in banking sector\u201d published in \u201cBusiness Line\u201d on 24th September 2026. UPSC Syllabus: GS-3- Economy\u00a0 Context: India\u2019s banking sector is increasingly dependent on digital infrastructure, fintechs, technology providers and third-party service providers. The emergence of AI-enabled and agentic cyberattacks has… Continue reading Cyber resilience in banking sector<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230],"tags":[12044,216,8184],"class_list":["post-372529","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","tag-business-line","tag-gs-paper-3","tag-indian-economy","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/372529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=372529"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/372529\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=372529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=372529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=372529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}