Finance Minister Nirmala Sitharaman Holds High Level Meeting with MD and CEO of Banks
Amid rising security concerns near India’s border regions, Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, chaired a high-level meeting with the Managing Directors and CEOs of public and private sector banks and insurance companies. The meeting focused on reviewing the operational readiness and cybersecurity preparedness of India’s financial sector, especially its digital infrastructure such as internet banking and UPI.
Key Participants
The meeting was attended by senior officials from:
- Department of Financial Services (DFS)
- Reserve Bank of India (RBI)
- Computer Emergency Response Team-India (CERT-In)
- Insurance Regulatory and Development Authority of India (IRDAI)
- National Payments Corporation of India (NPCI)
Strengthening Cybersecurity Defences
Bank MDs and CEOs assured the Finance Minister that enhanced cybersecurity measures had been put in place across the banking ecosystem. Key updates included:
- Deployment of anti-DDoS systems to protect against large-scale cyberattacks.
- Continuous monitoring of phishing threats and heightened internal alerts for staff awareness.
- Regular mock drills simulating cyberattacks and disaster recovery scenarios.
- Fully functional and alert Security Operations Centres (SOCs) and Network Operations Centres (NOCs) coordinating with CERT-In and the National Critical Information Infrastructure Protection Centre (NCIIPC) for real-time threat intelligence sharing.
Emphasis on Uninterrupted Banking Services
Smt. Sitharaman stressed the critical role of banks in maintaining economic stability, especially during geopolitical stress. She directed all banks to:
- Remain on high alert and ensure uninterrupted access to banking and financial services nationwide.
- Ensure smooth functioning of digital services like internet banking and UPI without technical failures.
- Update and test emergency protocols to handle any crisis.
- Give special attention to ensuring cash availability in ATMs and functioning of bank branches in border areas.
Protection for Bank Employees in Border Areas
Expressing concern for the safety of bank staff and their families stationed near border zones, the Finance Minister directed banks to:
- Coordinate with security agencies to ensure full protection for personnel.
- Monitor sensitive areas and have support mechanisms ready in case of emergencies.
Special Instructions for Cybersecurity & Operations
To ensure a focused response, Smt. Sitharaman instructed all banks to:
- Appoint two senior officers at headquarters:
- One dedicated to cybersecurity-related matters
- One for operational matters such as ATM cash management and branch functioning
- Ensure real-time reporting of incidents to CERT-In, DFS, and other relevant agencies.
- Conduct frequent audits of cybersecurity systems and data centers to check for vulnerabilities.
- Ensure that digital banking infrastructure is fully secured with active monitoring to prevent hostile cyber activity.
Directives for Insurance Companies
The Finance Minister also addressed insurance companies and directed them to:
- Ensure timely claim settlements for policyholders.
- Maintain uninterrupted customer service, even during periods of disruption or crisis.
Support for Regional Rural Banks (RRBs)
Smt. Sitharaman asked Sponsor Banks to:
- Provide handholding and technical support to RRBs.
- Ensure that rural banking services continue smoothly, particularly in areas where infrastructure or connectivity may be affected by ongoing tensions.
Reaffirming India’s Financial Stability
The Finance Minister concluded the meeting by reiterating that the Government of India is firmly committed to national security and economic stability. She emphasized that India’s banking and financial systems are robust, resilient, and fully capable of handling any crisis.
