By Mr. Abhay Ray Introduction
Amid escalating tensions between India and Pakistan and a surge in global cyber threats, Indian banks, insurers, and businesses are significantly ramping up their cyber security defenses. With the country’s digital infrastructure rapidly expanding through platforms for banking, e-commerce, and digital payments, the growing attack surface has made cyber resilience a top national and corporate priority.
In response to the volatile geopolitical climate and increasing cyber risks, Finance Minister Nirmala Sitharaman recently held a high-level meeting with managing directors and CEOs of major banks and insurance companies. She directed financial institutions to reinforce cybersecurity measures by conducting regular audits, real-time threat monitoring, and strengthening their core banking and digital systems with robust firewalls.
“We are adopting a proactive, multi-layered defense strategy, and all our systems are being continuously monitored,” said A. Manimekhalai, MD & CEO of Union Bank of India. She noted that banks have also conducted awareness campaigns to educate both employees and customers, reinforcing preparedness at all levels.
Real-Time Monitoring and Response
Banks have activated round-the-clock monitoring through fully operational Security Operations Centres (SOCs) and Network Operations Centres (NOCs). These facilities are in constant communication with key national agencies such as the Indian Computer Emergency Response Team (CERT-In) and the National Critical Information Infrastructure Protection Centre (NCIIPC), ensuring real-time data sharing and rapid threat response.
Several public sector banks have also formed Quick Response Teams (QRTs) composed of senior IT and operations personnel. These teams are tasked with swiftly assessing, containing, and neutralizing any cyber threat. A senior official from a leading public sector bank said, “The team is closely monitoring cyber threats to ensure immediate and effective action in case of any incident.”
Additionally, banks have deployed anti-DDoS (Distributed Denial-of-Service) protection systems to defend against potential large-scale cyberattacks designed to cripple services.
Government’s Mandate and Structural Changes
The Department of Financial Services (DFS) had issued instructions a week prior to Sitharaman’s meeting, urging banks to ensure uninterrupted delivery of financial services despite rising threats. The finance minister further instructed banks to appoint two dedicated senior officials at their headquarters — one to oversee cybersecurity reporting and the other to manage branch-level operations and ATM availability.
These officers are required to report all cyber-related incidents in real-time to CERT-In, DFS, or any other relevant authority. This move aims to create a centralized and responsive system capable of mitigating damage before it escalates.
Surge in Cyber Threats
The urgency stems from an observed rise in targeted cyberattacks, many linked to threat actors with affiliations to Pakistan. These groups have been using sophisticated malware tools such as Xeno RAT and Spark RAT to infiltrate Indian businesses and critical infrastructure. Ravindra Baviskar, Director of Sales Engineering at Sophos, a global cybersecurity firm, confirmed this trend, warning that these developments pose significant risks to national security and economic stability.
“Recent developments have shown a marked increase in cyber threats targeting Indian companies, particularly those operating in critical sectors,” Baviskar said.
Corporate Sector Steps Up
Beyond the banking and insurance sector, companies across various industries have also intensified their cybersecurity initiatives. This includes increasing the frequency of mock drills, enhancing employee awareness, and embracing more advanced technologies such as AI-driven threat detection and zero-trust architecture.
“Mock drills are essential for ensuring employee readiness and securing networks,” said Chetan Jain, Managing Director of Inspira Enterprise, a Mumbai-based cybersecurity solutions provider. “We conduct these drills regularly and back them with real-time monitoring, vulnerability assessments, and continuous improvement of clients’ security posture.”
Vulnerabilities and Human Factors
While technological improvements are crucial, cybersecurity experts emphasize that human error remains one of the weakest links in digital defense systems. Employees falling prey to phishing attacks, misconfigured security settings, and outdated systems can all create points of entry for cybercriminals.
Satykam Acharya, Co-founder and Director of Offensive Security at Infopercept, highlighted the multiple avenues adversaries can exploit. “Organizations must be aware of their exposure — be it from software vulnerabilities, counterfeit hardware, or even untrained employees,” he said.
Evaa Saiwal, Head of Liability & Cyber Insurance at Policybazaar for Business, underscored the growing complexity of the threat landscape. “Cybersecurity is no longer an IT department issue — it is a boardroom priority. The risks span from ransomware and phishing to espionage targeting critical infrastructure.”
High-Risk Sectors
According to experts, the most critical sectors to secure include:
- Banking, Financial Services and Insurance (BFSI)
- E-commerce and Quick Commerce Platforms
- Telecommunications Networks
These sectors store vast quantities of sensitive data — such as Know Your Customer (KYC) information, financial records, and personal addresses — making them highly attractive targets for both cybercriminals and state-sponsored attackers.
Tarun Wig, Co-founder & CEO of Innefu Labs, said the growing use of delivery apps, trading platforms, and digital wallets increases the volume of vulnerable data. “A breach in any of these platforms can disrupt the economy and, in some cases, compromise national security,” he warned.
The Road Ahead
India’s digital transformation is rapidly advancing, but so are the threats that come with it. The current wave of cyber hardening reflects a national awareness that cybersecurity must evolve from reactive defense to proactive resilience.
By combining advanced technologies, regulatory mandates, awareness programs, and dedicated response mechanisms, India’s financial and corporate sectors are setting the foundation for a more secure digital future. However, sustained vigilance and continuous upgrades will remain key as threat actors grow more innovative and persistent.
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