Nirmala Sitharaman asks banks to stay vigilant, ensure services as border tensions soar

New Delhi: Finance Minister Nirmala Sitharaman has instructed Indian banks to bolster their operational and cybersecurity preparedness, especially in border regions, as tensions with Pakistan escalate. During a Friday meeting with financial sector leaders, she stressed the need for uninterrupted services and prioritized the safety of bank staff and their families. 

Senior officials from the ministry of finance, Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (IRDAI), National Payments Corporation of India (NPCI), and Indian Computer Emergency Response Team (CERT-In) were also present.

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The meeting focused on assessing the banking sector’s operational and cybersecurity readiness, including the resilience of digital platforms such as Unified Payments Interface (UPI) and internet banking.

Sitharaman emphasized the need for glitch-free banking services and robust emergency protocols.

“Nirmala Sitharaman directed banks to conduct regular audits of their cybersecurity systems and data centres and ensure that all digital and core banking infrastructure is fully firewalled and monitored round the clock to prevent breaches or any hostile cyber activity," the ministry of finance said in a statement.

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She also instructed banks to appoint two senior officials at the headquarters—one to oversee cyber-related issues and the other to manage operational functions such as ATM cash availability and branch functionality.

These officials are to report incidents in real time to CERT-In and relevant government bodies.

‘Ensure timely settlement of claims’

To maintain financial stability, Sitharaman directed insurance companies to ensure the timely settlement of claims and continuous customer service.

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She also urged sponsor banks to provide support to Regional Rural Banks (RRBs), which often serve the most remote and vulnerable populations.

Meanwhile, bank executives informed the minister that anti-DDoS systems had been deployed, mock drills were being conducted, and cybersecurity teams were operating round the clock in close coordination with CERT-In and the National Critical Information Infrastructure Protection Centre (NCIIPC), the statement said. Anti-DDoS systems are designed to protect online services and applications from Distributed Denial-of-Service (DDoS) attacksthat aim to cripple systems with traffic.

"Sitharaman reiterated that the Government of India is firmly committed to national security and economic stability, and noted that the country’s banking and financial system remains robust and resilient," the statement added.