RBI Advocates for Cybersecurity Resilience with AI-Aware Strategies

The Reserve Bank of India emphasizes the importance of adopting risk-based supervision, zero-trust strategies, and AI-aware defense mechanisms to enhance cybersecurity in the financial sector. Increasing cyberattack surfaces due to expanding digital services necessitate these measures to prevent evolving AI-powered fraud and ensure system resilience.

The Reserve Bank of India (RBI) is urging the adoption of advanced cybersecurity strategies, highlighting the necessity for risk-based supervision and AI-aware defense mechanisms to combat the rise of online frauds in the financial sector.

In its latest Financial Stability Report, the central bank warns of the growing threat from generative AI-driven phishing and social engineering attacks, including deepfakes and contextual frauds. The RBI notes that the rapid expansion of digital financial services and interconnected systems has significantly increased vulnerabilities to cyberattacks.

To maintain trust and stability, the RBI stresses the critical importance of cyber resilience, particularly given the dependency on third-party IT and cloud providers. The report recommends robust monitoring, continuous training, and the development of uniform incident reporting frameworks to bolster the security of the financial ecosystem.

(With inputs from agencies.)