FM asks banks to stay alert, says financial system remains robust

Finance Minister asks banks to ensure uninterrupted banking, cyber vigilance and ATM cash flow amid India-Pakistan tensions; insurers told to speed up claim settlements

Amid the ongoing conflict with Pakistan, Union Finance Minister (FM) Nirmala Sitharaman on Friday directed banks and other financial institutions to ensure that all digital and core banking infrastructure was fullyfirewalled and monitored round the clock to prevent breaches or hostile cyber activity. 

The FM chaired a high-level meeting with the managing directors (MDs) and chief executive officers (CEOs) of public and private banks and insurers, in light of emerging security concerns arising from tensions at the border. 

During the meeting, Sitharaman reiterated that the government was firmly committed to national security and economic stability, noting that the country’s banking and financial system remains robust and resilient. 

The minister instructed banks to ensure that citizens and businesses do not face service disruptions under any circumstances.

Priority must be given to seamless cash availability at ATMs, uninterrupted Unified Payments Interface (UPI) and internet banking services, and continued access to essential banking facilities, she said.

 

“The FM 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. Sitharaman remarked that 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 finance ministry said in a statement.

 

Senior officials from the Department of Financial Services (DFS), the Indian Computer Emergency Response Team (CERT-In), the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India, and the National Payments Corporation of India were also present. 

 

The FM instructed banks to designate two senior officials at their headquarters — one to report all cyber-related matters and the other to oversee operational matters, including the functioning of bank branches and ATM cash availability. “These officials should report any incidents to CERT-In or relevant agencies and to the DFS on a real-time basis,” the ministry said.

 

“Banks were also asked to coordinate in real time with the RBI, CERT-In, and other relevant government agencies to ensure robust and agile information exchange and incident response.”

 

The FM also directed insurers to ensure timely claim settlements and uninterrupted customer services. She asked the sponsor banks to ensure that regional rural banks are well-supported during these times and hand-hold them for any issues that they are facing.

 

During the meeting, bank MDs and CEOs told the finance ministry that cybersecurity measures have been reinforced across the banking system. Anti-DDoS (Distributed Denial-of-Service) systems have been implemented to protect against large-scale cyberattacks.

 

“To guarantee institutional readiness, mock drills have been held encompassing cybersecurity and disaster recovery scenarios at the highest levels. They apprised that phishing attempts are being actively watched, and staff members have received several internal alerts to increase awareness,” the finance ministry said.

 

Bank officials said their Security Operations Centres and Network Operations Centres are fully operational and on high alert. These centres are working in close coordination with CERT-In and the National Critical Information Infrastructure Protection Centre, enabling real-time data sharing and threat tracking.

 

The minister expressed concern about the safety of bank employees and their families working at branches near border areas. She directed banks to ensure their adequate safety by effectively coordinating with the security agencies.