Business

IIE DIGITAL DESK : May 9, 2025 | New Delhi — In response to escalating tensions between India and Pakistan, Finance Minister Nirmala Sitharaman is scheduled to chair a high-level meeting this evening to assess the cybersecurity preparedness of India's financial institutions. The meeting aims to ensure the resilience of the country's banking and financial systems against potential cyber threats arising from the current geopolitical situation.

The review will involve key stakeholders, including representatives from public and private sector banks, the Reserve Bank of India (RBI), the National Payments Corporation of India (NPCI), the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), and the Indian Computer Emergency Response Team (CERT-In). The focus will be on evaluating existing cybersecurity measures and identifying areas requiring immediate reinforcement to safeguard critical financial infrastructure.

This proactive approach follows recent advisories issued by the government, urging financial institutions to heighten their cybersecurity protocols. The RBI and NPCI have been directed to implement stringent security measures to protect digital payment systems, especially the Unified Payments Interface (UPI), which handles approximately 17-18 billion transactions monthly, amounting to around ₹24 lakh crore. 

Public sector banks, including the State Bank of India (SBI) and Punjab National Bank (PNB), have assured customers of uninterrupted services. In statements released earlier today, both banks confirmed that their ATMs are well-stocked and digital banking services are functioning smoothly. They emphasized their commitment to maintaining operational continuity and customer trust during these uncertain times. 

Finance Minister Sitharaman has consistently highlighted the importance of robust cybersecurity frameworks within the banking sector. In previous addresses, she has stressed the need for collaborative efforts between banks, regulatory bodies, and security agencies to fortify defenses against cyber threats. She has also underscored the necessity for regular audits and updates to IT systems to prevent vulnerabilities. 

The current geopolitical climate, marked by recent military engagements and retaliatory actions between India and Pakistan, has heightened concerns over potential cyberattacks targeting critical infrastructure. The government's swift response in convening this review meeting reflects its commitment to preemptively addressing such threats and ensuring the stability of the nation's financial systems .

As the situation develops, the Ministry of Finance is expected to issue further guidelines and support mechanisms to bolster cybersecurity across all financial institutions. Stakeholders are encouraged to remain vigilant and adhere to best practices in cybersecurity to mitigate risks associated with the current tensions.