New Delhi, April 24, 2026: Union Finance Minister Nirmala Sitharaman has called on Indian banks to urgently strengthen their cybersecurity frameworks and build new defensive systems to counter growing risks posed by advanced artificial intelligence technologies.
She emphasized that the rapid evolution of AI systems is creating new categories of cyber threats that require stronger preparedness, real time monitoring, and coordinated responses across the banking ecosystem.
The Finance Minister said financial institutions must adopt proactive strategies to safeguard customer data, banking infrastructure, and digital transaction systems from potential AI driven vulnerabilities.
Officials indicated that discussions also focused on improving coordination between banks and cybersecurity agencies to ensure faster detection and response to emerging threats.
Sitharaman highlighted that artificial intelligence tools, while useful for efficiency and innovation, can also be misused to exploit software weaknesses at scale if not properly regulated.Banks were advised to enhance internal security audits and invest in advanced technology driven defence systems to keep pace with evolving risks.
The government also stressed the importance of real time threat intelligence sharing among financial institutions to strengthen collective resilience.
Alongside cybersecurity concerns, the Finance Minister also reviewed the broader macroeconomic environment, particularly developments in West Asia that may have implications for India’s energy and trade stability.
Officials noted that geopolitical tensions in the region are being closely monitored due to their potential impact on crude oil prices and supply chains.Sitharaman reportedly underlined that external shocks from global conflicts can influence inflation trends and overall economic stability in India.
The banking sector was also encouraged to remain vigilant in managing risk exposure while maintaining steady credit growth momentum.Experts believe that the increasing integration of AI in financial systems makes cybersecurity preparedness a critical priority for long term stability.
The meeting reflected growing recognition within the government that digital transformation in banking must be matched with equally strong security infrastructure.
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