Sitharaman Holds High-Level Review with Bank and Insurance Chiefs Amid Border Security Concerns

New Delhi: In light of emerging security concerns due to escalating tensions along the border, Union Minister for Finance and Corporate Affairs Nirmala Sitharaman convened a high-level meeting on Thursday with Managing Directors and CEOs of public and private sector banks, as well as heads of insurance companies, to assess the financial sector’s preparedness—especially in operational and cybersecurity domains.

The meeting saw participation from top officials of the Department of Financial Services (DFS), Reserve Bank of India (RBI), Insurance Regulatory and Development Authority of India (IRDAI), National Payments Corporation of India (NPCI), and the Indian Computer Emergency Response Team (CERT-In). The session focused on reviewing the robustness of the banking sector’s cybersecurity protocols, particularly those governing digital services such as internet banking and Unified Payments Interface (UPI).

Bank leaders briefed the Union Finance Minister on the reinforced security measures being taken in response to the heightened risk environment. Several institutions reported the deployment of anti-DDoS systems, heightened phishing surveillance, and staff sensitization through internal alerts. Many banks have already conducted cybersecurity and disaster recovery mock drills to test their readiness.

Officials noted that their Security Operations Centres (SOCs) and Network Operations Centres (NOCs) are operating at peak alert levels, with continuous coordination underway with CERT-In and the National Critical Information Infrastructure Protection Centre (NCIIPC) to ensure real-time threat monitoring and response.

During the meeting, Sitharaman underlined the crucial responsibility the financial sector holds in maintaining economic continuity during geopolitical disturbances. She directed all banks to ensure round-the-clock availability of both digital and physical banking services, particularly in border regions. Special emphasis was placed on maintaining cash availability in ATMs, smooth functioning of internet and UPI services, and uninterrupted access to essential banking functions.

The Union Finance Minister also expressed concern over the safety of bank personnel operating in sensitive areas and instructed banks to work in close coordination with security agencies to ensure their protection. She further directed institutions to update and routinely test emergency protocols to effectively manage any unexpected crisis.

To strengthen operational and cybersecurity monitoring, Sitharaman instructed banks to appoint two senior officials—one to oversee cyber-related matters and another to supervise operational continuity and cash management. These officers are expected to report incidents in real-time to CERT-In, DFS, and other concerned authorities.

Insurance companies were also directed to guarantee uninterrupted services and ensure timely claim settlements during the period of increased tension. Sponsor banks were urged to actively support Regional Rural Banks (RRBs) and assist them in overcoming operational challenges.

Reiterating the Government of India’s unwavering commitment to national security and economic resilience, Sitharaman affirmed that the Indian banking and financial system remains strong, secure, and well-prepared to face any contingency.