Finance Ministry issued warning to RBI, Banks, NPCI to strengthen their Cyber Security

The Finance Ministry has issued a warning to key financial institutions in India, including the Reserve Bank of India (RBI), major banks, and the National Payments Corporation of India (NPCI), urging them to strengthen their cyber security efforts. The government is working hard to protect the nation’s financial system and digital payment infrastructure amidst rising tensions with Pakistan.

Why Is Cyber Security So Important Right Now?

The advisory is especially critical due to the growing concerns about cyber threats as the situation between India and Pakistan is getting worse. India has become a leader in digital payments, with millions of people using platforms like UPI (Unified Payments Interface) to make fast, secure payments. India handles 17-18 billion mobile payment transactions each month, worth around ₹24 lakh crore. This makes it vital to protect systems like UPI, core banking systems, and payment gateways from potential cyber-attacks.

What Does the Advisory Involve?

Government sources confirmed that a detailed advisory has been issued to ensure that these institutions are on high alert and well-prepared to handle any potential cyber threats. The advisory focuses on several key areas:

1. Core Banking Systems – These are the backbones of banks and financial services.
2. Payment Gateways – These systems enable secure payment transactions across various platforms.
3. Real-Time Gross Settlement Systems (RTGS) – These systems are used for large, high-priority transactions.
4. Unified Payments Interface (UPI) – The UPI infrastructure, which handles a massive volume of mobile payments, must be protected against cyber threats.

Background: Why the Urgent Advisory?

Pakistan is continuously attacking India after Operation Sindoor. On May 8, India successfully repelled missile and drone attacks aimed at its border areas and military bases in Jammu, Pathankot, Udhampur, and other locations.

Two key agencies are actively working to ensure the security of India’s cyber infrastructure:

1. CERT-In (Indian Computer Emergency Response Team) – This team, part of the Ministry of Electronics and Information Technology, plays a crucial role in monitoring and responding to cyber threats in the country.
2. NCIIPC (National Critical Information Infrastructure Protection Centre) – Under the National Technical Research Organisation (NTRO), the NCIIPC is responsible for protecting the nation’s Critical Information Infrastructure (CII), which includes systems that are vital to national security and economic stability.

Earlier, both CERT-In and the RBI had advised major financial institutions and payment companies to be prepared for cyber-attacks given the current geopolitical situation. The government’s move to bolster cyber security efforts comes as part of a larger strategy to safeguard the nation’s financial systems and ensure smooth digital operations.