Amid rising threats from advanced cyberattacks driven by artificial intelligence, India's Finance Minister Nirmala Sitharaman has called for enhanced vigilance among banks and market institutions. During a recent regulatory event, she warned that cybercriminals are increasingly leveraging sophisticated technologies to automate their attacks, which poses significant risks to financial stability.
Sitharaman stressed the necessity for financial entities to upgrade their defenses, stating that reliance on outdated security measures is no longer viable. She highlighted that a single successful attack on a major financial institution could lead to widespread disruptions, eroding investor trust and destabilizing markets. This warning comes as global regulators reevaluate existing cybersecurity frameworks in light of evolving AI capabilities.
The Finance Minister also urged the Securities and Exchange Board of India (SEBI) to foster greater cooperation with international regulators. This collaboration aims to better understand emerging risks and enhance global investor confidence. Sitharaman emphasized that regulatory approaches should be adaptable and forward-looking, focusing on consultation rather than rigid rule enforcement in response to a rapidly changing digital landscape.