“RBI Warns Banks of Cyber Threats, Outlines Security Measures: Report”
The Reserve Bank of India (RBI) has issued a cyber threat alert to banks, urging them to strengthen their security measures to combat potential cyber attacks. The alert comes following the latest round of Cyber Security and Information Technology Examination (CSITE) conducted by the central bank, as reported by Moneycontrol citing industry sources.
The Reserve Bank of India (RBI) has issued a cyber threat alert to banks, urging them to strengthen their security measures to combat potential cyber attacks. The alert comes following the latest round of Cyber Security and Information Technology Examination (CSITE) conducted by the central bank, as reported by Moneycontrol citing industry sources.
During the CSITE inspection, RBI identified deficiencies in the cyber security capabilities of banks and provided specific action points to address these gaps. The report highlights that RBI’s deputy governor, T Rabi Sankar, emphasized the need for the banking sector to prepare for new cyber security risks, especially in the context of emerging technologies like artificial intelligence (AI).
One banker, quoted in the report, mentioned that RBI conducted a separate inspection focused on cyber security and presented banks with a list of action points to rectify identified deficiencies. Sankar stressed the importance of rebuilding encrypted systems to detect and mitigate risks associated with AI abuse, highlighting the challenges posed by the ability of AI to process vast amounts of data rapidly.
The RBI’s cautionary stance on cyber security follows a rise in cyber security breaches within the banking system in recent years. Government data revealed that Indian banks reported 248 successful data breaches by hackers and miscreants between June 2018 and March 2022. Of these, 41 breaches were reported by public sector banks, while their private counterparts reported 205 breaches. Foreign banks reported two cases during the same period.
The RBI’s proactive approach underscores the critical importance of cyber security readiness in the financial sector, urging banks to prioritize security measures and implement necessary improvements to safeguard customer data and financial systems.
Sources By Agencies
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