Finance Minister Instructs Banks to Enhance Cybersecurity and Service Continuity amid Security Concerns

Union Finance Minister Nirmala Sitharaman on Friday, May 9th, directed all public and private sector banks and insurance companies in India to significantly boost up their cybersecurity infrastructure and ensure the uninterrupted provision of essential financial services. This directive comes amidst escalating national security concerns, particularly in vulnerable border regions, and aims to safeguard the country's economic stability.

Cybersecurity and Service Continuity Mandated

During a high-level review meeting in New Delhi with banking and insurance sector leaders, Ms. Sitharaman emphasized the critical need for heightened vigilance. She instructed financial institutions to ensure their digital and core banking systems are "fully firewalled and monitored round the clock" to protect against breaches and hostile cyber activities. Banks were also directed to conduct regular cybersecurity audits, update and test emergency protocols, and prioritize seamless cash availability at ATMs alongside uninterrupted UPI and internet banking services. Furthermore, institutions must now designate two senior officers at their headquarters for real-time cyber incident reporting to CERT-In and other relevant agencies, and for maintaining operational continuity.

Financial Institutions Report Intensified Defences

Bank executives present at the meeting informed the Finance Minister that comprehensive cybersecurity reinforcements have already been implemented. These measures include the deployment of anti-DDoS systems, execution of mock drills for disaster recovery and breach scenarios, and heightened alertness of Security Operations Centres (SOCs) and Network Operations Centres (NOCs). Banks also reported close monitoring of phishing attempts and conducting internal awareness programs for employees. They are working in close coordination with national bodies like CERT-In and the National Critical Information Infrastructure Protection Centre (NCIIPC) for real-time threat intelligence sharing. Insurance companies were similarly directed to ensure timely claim settlements and continuous customer service.

The Finance Minister's review stresses the government's proactive approach to fortifying India's financial sector against potential cyber threats and operational disruptions during periods of increased security concerns. Asserting the robustness of the financial system, Ms. Sitharaman's directives aim to ensure that essential banking and insurance services remain consistently accessible to the public across the nation.

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