Nirmala Sitharaman chairs high-level meet on AI cyber risks, warns of ‘unprecedented threats’

Union Finance Minister Nirmala Sitharaman, along with IT Minister Ashwini Vaishnaw, chaired a high-level meeting with banks and key stakeholders to assess emerging cybersecurity threats linked to advanced artificial intelligence (AI) models, as per official statements.

The meeting, attended by senior officials from the Reserve Bank of India, National Payments Corporation of India, and Indian Computer Emergency Response Team, along with CEOs of scheduled commercial banks, focused on the potential misuse of AI to exploit software vulnerabilities.

Taking to X, Sitharaman cautioned that the threat posed by next-generation AI systems is unprecedented and requires heightened vigilance, preparedness, and stronger coordination across the financial ecosystem. The discussions also referenced concerns around advanced AI models such as Claude Mythos, which is reportedly highly capable in cybersecurity domains.

The Finance Minister appreciated the progress made by banks in strengthening cybersecurity frameworks but stressed the need for continuous upgrades. She directed the Indian Banks’ Association to develop a coordinated institutional mechanism for rapid response to cyber threats.

Banks were advised to engage top cybersecurity experts and specialised agencies to bolster monitoring and defence systems. They were also instructed to immediately report suspicious activities or cyber incidents to authorities, including CERT-In, and maintain close coordination with all relevant agencies.

Emphasising proactive measures, Sitharaman urged banks to secure IT infrastructure, protect customer data, and safeguard financial resources. She also called for establishing a robust real-time threat intelligence-sharing mechanism among banks and regulatory bodies to detect and respond to risks swiftly.

The meeting underscores the government’s growing focus on addressing cybersecurity challenges in the AI era, particularly as financial systems become increasingly digitised and interconnected.