RBI alert about AI-driven cyber risks; banks taking steps to plug vulnerabilities: Governor

Amid the emerging cyber threats from artificial intelligence AI agents in the banking system the Reserve Bank of India Governor Sanjay Malhotra on Friday said the regulator and the banks are alert about the risks and are implementing measures to secure their IT systems according to news agency PTIMajor US banks reportedly have detected thirdparty AI agents within customer accounts raising concerns that these automated tools could act beyond the instructions provided by customersReferring to reports that AI agents operating in test environments had allegedly targeted banks overseas and stolen data Malhotra acknowledged that such threats were genuine but said they could be mitigated by ensuring robust banking system securityOur banks the government as well as the RBI we have alerted them and they are conscious about it and they are taking measures to ensure that such kind of vulnerabilities wherever they are are plugged he said at the NDTV World SummitThe RBI Governors statements come amid the countrys largest lender State Bank of India SBI confirming that 3897 customer records with personally identifiable information were exposed on the dark webRBI in dialogue with banks and NBFC to strengthen IT infrastructureMalhotra said the apex bank appropriate regulations and supervisory mechanisms with a strong team along with experts who audit the IT systems of major banks and nonbanking financial companies NBFCsThe financial regulator is in continuous dialogue with banks and nonbank lenders to strengthen their IT infrastructure and ensure compliance with the prescribed regulations he saidHe outlined two key areas ndash data security and protection against cyberattacks ndash that could disrupt banking systems and cause downtimeMalhotra noted that while the RBI has a robust regulatory and supervisory framework the rapid pace of software development means that vulnerabilities can sometimes emergeIt is our endeavour that we identify these vulnerabilities as soon as possible and plug them through the patches that have to be deployed in these IT systems he addedFCNR B deposit repaymentThe RBI has sufficient reserves and time to pay back the foreign currency nonresident bank deposits it mobilised under its special concessional window he saidI am very optimistic that our external sector is very resilient very strong We already have sufficient money and reserves to pay that but we will have even more than that And the average deposit size is four years plus so we have sufficient time to repay he saidThe RBI had introduced a shortswap facility on June 8 under which it would bear the full hedging costs for banks raising fresh 35 year FCNRB deposits The scheme closed on August 31 a month ahead of the original deadline after garnering USD 13298 billion worth of FCNRB depositsI am optimistic that in the medium term the balance of payments and the external situation is going to be strong he saidWe already have sufficient forex reserves by all metrics We built on them we reinforced them through the FCNRB scheme as you are aware All other parameters like services exports remittances among others also point to a strong external sector in the mediumterm he addedRupee and inflationOn the rupee the Governor said the RBI is not defending a specific currency value but is ensuring orderly conditions in the foreign exchange market and managing volatilityWhile noting that strong macroeconomic fundamentals continue to support economic activity with highfrequency indicators pointing to resilient growth across sectors he said inflation targeting remains a priority along with growth He added that the RBI is committed to maintaining price stability while supporting the economyHe further said inflation remains within the RBIs tolerance band of 26 per cent although supplyside pressures particularly from food and fuel continue to pose challenges to the inflation outlookWith inputs from PTI