FM reviews cybersecurity preparedness of banks, insurance companies amid Indo-Pak tensions

Amidst the heightened border tension between India and Pakistan, Finance Minister Nirmala Sitharaman today directed all the banks to remain fully alert and prepared on the cybersecurity front and deal with any eventuality or crisis, ensuring uninterrupted access to banking and financial services. The directions came during a meeting to review the banking sector's operational and cybersecurity preparedness, including digital applications such as internet banking and UPI.

The minister also directed the banks to ensure the safety of bank employees and their families working at branches around the border areas and told the insurance companies to give timely claim settlements and uninterrupted customer service.

Managing Directors and CEOs of public and private sector banks and insurance companies were present in the high level meeting held amidst security concerns arising from tensions at the border.

“During the meeting, Smt. Sitharaman stressed the critical role of the banking and financial sector in ensuring economic stability during heightened geopolitical tensions and challenging times. The union finance minister directed all banks to remain fully alert and prepared to deal with any eventuality or crisis, ensuring uninterrupted access to banking & financial services for citizens across the country, especially in border areas,” said a release from the Ministry of Finance.

“Banking services, both physical and digital, must function without disruption and glitches, and emergency protocols should be updated and tested to handle any arising contingencies,” the release quoted the FM.

The finance minister asked banks to ensure that citizens and businesses do not suffer under any circumstances, and priority must be given to seamless cash availability at ATMs, uninterrupted UPI and internet banking services, and continued access to essential banking facilities, the release said.

The minister directed the 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 around the clock to prevent breaches or any hostile cyber activity.

She also instructed banks to designate two dedicated senior officials identified at the headquarters, one for reporting all cyber-related matters and the other to ensure operational matters, including the functioning of bank branches and the availability of cash in ATMs. Banks have also been asked to coordinate in real time with the Reserve Bank of India, CERT-In and relevant Government agencies to ensure robust and agile information exchange and response.

The minister directed insurance companies to ensure timely claim settlements and uninterrupted customer service.