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In the midst of ceasfire with Pakistan and its violation by the neighbouring country, branches of public-sector banks (PSBs) in bordering states have ramped up preparedness with cash and defences against cyberattacks.
Senior officials in at least four PSBs and one small finance bank with a strong presence in these regions said there had been a significant inflow of cash, prompting intensified efforts to ensure its availability.
“We are adhering to the directives of the local administration regarding operating hours. Additionally, we are taking steps to ensure adequate cash availability at both ATMs and bank branches,” said a public-sector banker.
Last Friday, Union Finance Minister Nirmala Sitharaman asked banks and financial institutions to ensure that all digital and core banking infrastructure was firewalled and monitored round the clock to prevent breaches or hostile cyberattacks.
Banks such as Punjab & Sind Bank, Canara Bank, Union Bank of India, and Punjab National Bank have asked their circle heads to stay in their zonal offices.
Some banks have been asked to operate during weekends.
“We have strengthened our cybersecurity systems to counter cyberattacks. A 24-hour war room has been established, and our teams are working on all intelligence inputs,” said Ashok Chandra, managing director (MD) and chief executive officer (CEO), Punjab National Bank, in a statement to Business Standard.
Chandra added special instructions had been given to branches near border areas to ensure employee safety and keep ATMs stocked with cash. ALSO READ: Demand for cash surges in border areas following Operation Sindoor
Another senior banker in a PSB noted vigilance had been heightened in anticipation of cyber threats. “We need to stay alert regarding cyberattacks,” the banker said.
Meanwhile, bankers also highlighted a surge in cash inflow in border states owing to wheat harvesting in the Kharif season.
“Given our strong presence in rural and semiurban areas, and with wheat harvesting underway, there has been a healthy inflow of funds. On March 31, our deposits stood at ₹8,323 crore, and as on May 9, they rose to ₹8,790 crore. This increase is primarily due to seasonal inflows. We have ATMs at every branch and are ensuring they remain fully stocked with cash,” said Sarvjit Singh Samra, MD and CEO, Capital Small Finance Bank.
According to the latest data from the Reserve Bank of India (RBI), Jammu & Kashmir, Punjab, Rajasthan, Gujarat, and Himachal Pradesh together accounted for 12.81 per cent of India’s bank deposits — ₹26.21 trillion — and 13.41 per cent of advances — ₹22.13 trillion — as of March 2024.
An internal letter on May 1 from Punjab & Sind Bank, reviewed by Business Standard, stated: “As a critical sector entity, it is imperative that we take all necessary steps to prevent service disruptions and ensure business continuity. In the event of any untoward incident, field staff should remain calm and report immediately to the head office.”
Meanwhile, Canara Bank, in an internal email to its staff also on May 1, said: “All circle heads shall not leave their headquarters for the next two weeks. They must remain stationed at their respective offices and monitor the functioning of all units under their jurisdiction.”
Jammu & Kashmir, a Union Territory and at the heart of the current tensions, has a 3,323-km border with Pakistan, including the Line of Control (LoC), making it a focal point for both security concerns and banking operations.
