RBI issues cyber threat alerts to banks with action plans to plug security gaps. Click to know the details

The Reserve Bank of India (RBI) has issued a cybersecurity alert to select banks, urging them to bolster their security measures in light of increasing cyber threats. The alert follows a recent round of Cyber Security and Information Technology Examination (CSITE) conducted by the central bank, where deficiencies were identified.

According to industry sources, RBI has directed banks to be prepared for potential cyber-attacks and has provided specific action points to address security gaps identified during the examination. The move comes amidst a rise in cyber security breaches within the banking sector, with Indian banks reporting 248 successful data breaches between June 2018 and March 2022.

RBI’s Deputy Governor T Rabi Sankar emphasized the need for the banking sector to anticipate new cyber security risks and prioritize customer convenience while enhancing security measures. He highlighted the importance of rebuilding encrypted systems to address the risks associated with artificial intelligence (AI) abuse, stressing the need for a comprehensive approach to cybersecurity.

The recent surge in cyber threats underscores the importance of proactive measures to safeguard sensitive financial data. Public and private sector banks alike have reported data breaches, with private peers accounting for the majority of incidents. Foreign banks operating in India have also reported instances of cyber security breaches, highlighting the pervasive nature of the threat.

As the banking sector continues to evolve, it is imperative for institutions to remain vigilant and implement robust cybersecurity protocols to protect against emerging threats. RBI’s advisory serves as a timely reminder for banks to prioritize cybersecurity and invest in measures to mitigate risks posed by cyber-attacks.