As a recent emergence, the RBI has acted officially to issue a warning to all the financial institutions in the country regarding cyber threats. The action follows reports of a credible threat to the central bank and other banks Given intelligence information that suggested the imminent launching of cyber war on the banking institutions.
Its advice has everyone stunned from the Reserve Bank of India now instructing banks to increase their vigilance and strengthen their resistance mechanisms as insurance against these expected threats. The directive highlights the rising issues concerning the security of the financial system, hence the increase in the number of cyber incidents recorded in the recent past.
Among the specifics of the Indian financial sector mentioned in the RBI’s Financial Sustainability Report, it can be highlighted that more than 20,000 cyber attacks were detected over the last twenty years, and the losses reached $20 billion.
According to the report further, SCBs have borne the brunt of these attacks and 69% of the total number of attacks being carried out on them, followed by the urban co-operative banks as well as the NBFCs, which have been targeted by 19% and 12% of the total attacks respectively.
Banks, on their part, have not been this passive – more preventive measures are being instituted to protect the interests of their customers. There are different factors; after the attacks, most banks have raised their hull exposure for cyber insurance by nearly 8% in the current.
Financial Year compared to the last Financial Year. Besides, the increase in claims made by the banks to CY-RELATED incidences has risen to above 50 percent for the FY 2022-23 from 40 percent of the previous year.
