Sitharaman Calls for Stronger Cyber Shields in Banking as AI Risks and Global Tensions Rise

New Delhi, Apr 24 (BNP): Union Finance Minister Nirmala Sitharaman has urged India’s banking sector to step up its defences against emerging digital threats, cautioning that rapid advances in artificial intelligence are reshaping the risk landscape for financial institutions.

Speaking at a recent review meeting with senior bankers and officials, the minister stressed that cybersecurity can no longer be treated as a back-end function. Instead, she said, it must become a core priority as banks handle growing volumes of digital transactions and sensitive customer data.

Sitharaman pointed out that newer AI-driven tools have the potential to exploit system vulnerabilities more quickly and at a larger scale than before. In this context, she encouraged banks to invest in smarter monitoring systems, strengthen internal safeguards, and stay alert to evolving threat patterns. She also highlighted the importance of coordination among financial institutions and government agencies to respond effectively to cyber risks.

Alongside technology-related concerns, the minister drew attention to external pressures stemming from ongoing tensions in West Asia. She noted that global uncertainties, particularly those affecting energy markets and trade routes, could have a ripple effect on financial stability. Banks, she said, must remain prepared for sudden shifts in the global economic environment.

The message from the finance ministry signals a broader push to make India’s banking system more resilient—both digitally and economically—as it adapts to fast-changing technologies and an increasingly unpredictable global backdrop.