As tensions between India and Pakistan escalate, Finance Minister Nirmala Sitharaman has called on all banks to stay fully prepared to handle any unforeseen situations. “All banks must remain fully alert and prepared to deal with any eventuality or crisis, ensuring uninterrupted access to banking and financial services for citizens and businesses,” Sitharaman emphasized in a recent statement.
On Friday, FM Sitharaman convened a high-level meeting with the top officials of both public, private sector banks and insurance companies. The meeting focused on reviewing the banking sector’s cybersecurity preparedness to ensure uninterrupted banking services amid India-Pakistan tensions.
The Finance Minister stressed that both physical and digital banking services must function without disruption, ensuring cash availability at ATMs, continuous UPI and internet banking services, and access to other essential banking facilities. Emergency protocols should be updated and tested to manage any contingencies effectively.
Sitharaman also expressed concern about the safety of bank employees in border areas and directed banks to coordinate with security agencies for their protection.
India has experienced a revolution in digital payments, with the National Payments Corporation of India (NPCI) and major banks playing a crucial role in supporting this digital infrastructure. The country witnesses approximately 17-18 billion mobile payment transactions every month, totaling around Rs 24 lakh crore.
Cybersecurity measures
During the meeting, the bank leaders highlighted that cybersecurity measures have been significantly reinforced across the banking system. Anti-DDoS (Distributed Denial-of-Service) systems have been implemented to guard against large-scale cyber-attacks. Banks have also carried out mock drills for cybersecurity and disaster recovery to ensure preparedness. Special emphasis was placed on monitoring phishing attempts, with internal alerts issued to enhance staff awareness.
Sitharaman emphasised the critical role of the banking sector in maintaining economic stability during such volatile times. She directed all banks to remain fully alert and prepared to handle any crisis, ensuring uninterrupted access to banking services for both citizens and businesses, particularly in border areas.
India successfully defended against multiple missile and drone attacks from Pakistan on the night of May 8. Following this, the government instructed key institutions to enhance cybersecurity measures for critical banking systems and payment infrastructure, such as core banking systems, payment gateways, real-time gross settlement systems, and Unified Payments Interface (UPI) infrastructure.
