Indo-Pak conflict: Sitharaman asks banks to ensure uninterrupted services

New Delhi: Finance Minister Nirmala Sitharaman on Friday asked banks to remain vigilant and take all steps to ensure uninterrupted services to customers in view of heightened military conflict between India and Pakistan.

Addressing a meeting of CEO of banks and insurance companies on cybersecurity preparedness, the finance minister stressed the critical role of the banking and financial sector in ensuring economic stability in challenging times.

Banking services, both physical and digital, must function without disruption and glitches, she said, adding that emergency protocols should be updated and tested to handle any contingencies.

She advised banks to ensure the safety of bank employees and their families working at branches along the border areas.

Sitharaman also directed banks to ensure their adequate safety by effectively coordinating with the security agencies, the finance ministry said in a statement after the high-level meeting.

It was attended by top officials of banks and insurance companies and senior officials from the Department of Financial Services (Ministry of Finance), CERT-In, RBI, Irdai and NPCI.

She also asked banks to ensure that citizens and businesses do not suffer under any circumstances, and priority must be given to seamless cash availability at ATMs, uninterrupted UPI and internet banking services, and continued access to essential banking facilities.

Earlier in the day, public sector banks, including State Bank of India and Punjab National Bank, said their ATMs are fully functional, well-stocked, and that digital services are operating smoothly.

Sitharaman reiterated that the government is firmly committed to national security and economic stability, noting that the country's banking and financial system remains robust and resilient.

During the meeting, the finance minister reviewed operational and cybersecurity preparedness, including digital public-facing applications like internet banking and UPI.

Bank MDs and CEOs informed that cybersecurity measures have been reinforced throughout the banking system. Anti-DDoS (Distributed Denial-of-Service) systems have been implemented by banks to protect against massive cyberattacks, the statement said.

To guarantee institutional readiness, mock drills have been held covering cybersecurity and disaster recovery scenarios at the highest levels, it said, adding that they apprised that phishing attempts are being actively watched, and staff members have received several internal alerts to increase awareness.

Bank officials stated that their Security Operations Centre (SOC) and Network Operations Centres are fully operational and on high alert, it said.

These centres are coordinating closely with CERT-In and the National Critical Information Infrastructure Protection Centre (NCIIPC), facilitating real-time data sharing and threat monitoring, it added.

To meet any eventuality, Sitharaman directed banks to conduct regular audits of their cybersecurity systems and data centres and ensure that all digital and core-banking infrastructure is fully firewalled and monitored around the clock to prevent breaches or any hostile cyber activity.

She instructed banks to designate two dedicated senior officials identified at the headquarters, one for reporting all cyber-related matters and the other to ensure operational matters, including the functioning of bank branches and the availability of cash in ATMs.

Both dedicated officers should report any incident to CERT-In/relevant agencies and DFS on a real-time basis, the statement said.

In this regard, it said, banks were also asked to coordinate in real time with the Reserve Bank of India, CERT-In and relevant government agencies to ensure robust and agile information exchange and response.

As regards the insurance sector, the finance minister asked insurance companies to ensure timely claim settlements and uninterrupted customer service.

Sitharaman also said the Sponsor Banks should ensure that RRBs are well-supported during these times and hand-hold them for any issues that they are facing.