Mumbai, January 27, 2025: Reserve Bank of India (RBI) Governor Sanjay Malhotra has called on banks to establish robust and proactive systems to combat the increasing number of digital frauds. Highlighting the urgency of the situation, Malhotra stressed the importance of strengthening information-technology risk management and cybersecurity frameworks.
The advisory came during a meeting held in Mumbai with the MDs and CEOs of public and private sector banks. Senior RBI officials, including Deputy Governors M Rajeshwar Rao, T Rabi Sankar, and Swaminathan J, along with executive directors overseeing regulation and supervision, also attended the meeting. This engagement is part of the central bank’s regular interactions with top management of supervised entities.
Focus on IT Risk Management
Governor Malhotra emphasized the need for banks to:
- Strengthen Oversight: Ensure enhanced monitoring of third-party service providers to address vulnerabilities.
- Upgrade IT Systems: Regularly improve technological infrastructure to counter emerging cyber threats.
- Promote Digital Awareness: Educate customers about digital security to reduce fraud incidents.
- Collaborate with the RBI: Work closely with the central bank to implement effective cybersecurity measures.
Liquidity Measures to Support Banks
In addition to addressing cybersecurity, the RBI announced Open Market Operations (OMOs) worth Rs 60,000 crore to manage liquidity concerns in the banking system. The OMOs will be conducted in three tranches of Rs 20,000 crore each on January 30, February 13, and February 20, 2025.
Broader Goals
During his address, Malhotra acknowledged the significant role banks play in ensuring financial stability and resilience. He urged financial institutions to:
- Deepen financial inclusion.
- Enhance access to affordable credit.
- Improve customer service and grievance redressal mechanisms.
- Continue investing in technology to build resilience.
RBI’s Commitment
The RBI’s proactive approach reflects its commitment to strengthening India’s financial ecosystem. With digital transactions on the rise, cybersecurity has become a top priority to ensure consumer confidence and the integrity of the financial system.