MSC Bank sets up country's first cyber security operations centre

In a move to bolster digital resilience in the cooperative banking sector, the Maharashtra State Cooperative Bank (MSC Bank) has established the country's first cyber-security operation centre (C-SOC) to provide protection against increasing cyber threats.

The facility, Sahakar Suraksha, has been set up in Vashi, Navi Mumbai, at a cost of Rs 50 crore, a senior official said.

In an interview with PTI, MSC Bank Chairman Vidyadhar Anaskar said the bank's decision to launch the C-SOC stemmed from a pressing need to protect cooperative banks and their customers from cyber fraud.

"There have been more than 10 lakh cyber attacks on cooperative banks in recent years, causing financial losses running into crores. One particular fraud alone caused a loss of around Rs 50 crore," he said.

Anaskar said most cooperative and rural banks are ill-equipped to build robust cyber defence infrastructure.

"They neither have the technical manpower nor the funds. That is why we have developed a shared cybersecurity mechanism for the sector," he said.

He emphasised that the C-SOC's services will be provided free of cost to member banks.

"This is a cooperative initiative in its true spirit. We will not charge anything for providing 24/7 surveillance and protection," Anaskar said.

The C-SOC, which was inaugurated on Friday, is designed to serve 31 district central cooperative banks in Maharashtra. The system, powered by an AI-driven platform, is capable of detecting known and emerging cyber threats in real time and issuing immediate alerts to participating banks.

Anaskar said the centre recently helped avert a major cyber breach at a cooperative bank in Sindhudurg.

"We issued an early warning to the bank, and the funds were secured in time," he said.

The facility is currently manned by 35 trained cyber-security professionals working in shifts to ensure round-the-clock operation.

MSC Bank also plans to offer cyber hygiene training to officials and staff of member banks to improve awareness and preparedness against online threats.

Anaskar said the initiative is a forward-looking step for the entire cooperative sector and is expected to serve as a model for other states.

"With increasing reliance on digital platforms and the rise of AI, such infrastructure is not optional anymore. It is a necessity," he added.