Nirmala Sitharaman chaired a high-level meeting to assess emerging cybersecurity threats posed by artificial intelligence in the banking sector, as concerns grow over increasingly sophisticated digital risks.The meeting brought together senior officials from the finance ministry, banking regulators, and executives from public and private sector banks. Discussions focused on how AI-driven tools are being used both to strengthen financial systems and, conversely, to enable more complex cyberattacks such as deepfake fraud, phishing automation, and identity theft.

Officials highlighted that the rapid adoption of artificial intelligence in financial services has expanded the threat landscape, requiring banks to upgrade their cybersecurity frameworks. The role of the Reserve Bank of India (RBI) in guiding regulatory safeguards and ensuring compliance with digital security standards was a key focus during the deliberations.

Sitharaman emphasised the need for proactive risk management, urging banks to invest in advanced threat detection systems and real-time monitoring capabilities. She also called for stronger coordination between financial institutions, regulators, and cybersecurity agencies to share intelligence and respond swiftly to emerging threats.

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The meeting also examined preparedness levels across banks, including their ability to detect AI-enabled fraud attempts and protect customer data. Participants discussed the importance of employee training and public awareness campaigns to mitigate risks arising from social engineering tactics powered by AI technologies.

The initiative reflects the government’s broader push to secure India’s rapidly digitising financial ecosystem. As banks continue to integrate advanced technologies into their operations, authorities are focusing on ensuring that innovation is matched with robust safeguards to maintain trust and stability in the sector.

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