Finance Minister Nirmala Sitharaman on Friday said that Indian banks are adequately prepared to deal with emerging technology-related challenges, even as she raised fresh concerns over risks linked to a new artificial intelligence model developed by Anthropic.
Speaking to reporters, FM Sitharaman noted that India is closely monitoring the potential threats posed by Anthropic’s Mythos AI model, which has drawn global attention for its advanced capabilities.
The remarks came after Sitharaman chaired a high-level meeting along with Union IT Minister Ashwini Vaishnaw on Thursday, where officials assessed emerging threats linked to cutting-edge AI systems, including the recently developed Mythos model by Anthropic.
Banks asked to step up vigilance
Sitharaman said that while Indian banks have historically maintained strong cybersecurity standards, the evolving nature of AI-driven threats requires a more advanced and coordinated response.
“Banks have done very well over the decades in protecting customers, but what we have may not be sufficient for the future. We need something far more versatile to counter newer threats,” she said.
She directed banks to take pre-emptive measures to secure IT systems, safeguard customer data, and protect financial resources. Lenders have also been advised to engage top cybersecurity professionals and specialised agencies to enhance monitoring and defence capabilities.
Coordinated sector-wide response
The Finance Minister tasked the Indian Banks’ Association with leading a coordinated institutional mechanism to address AI-related risks. Banks have been asked to collaborate closely and establish real-time threat intelligence sharing systems.
They were also instructed to promptly report any suspicious cyber activity to agencies such as the Indian Computer Emergency Response Team (CERT-In) and maintain close coordination with regulators and government bodies.
Senior officials from the Reserve Bank of India, National Payments Corporation of India, and the Department of Financial Services, including Secretary M Nagaraju and CERT-In Director General Sanjay Bahl, attended the meeting along with heads of scheduled commercial banks.
Monitoring AI risks and global engagement
Sitharaman said the government, along with the Ministry of Electronics and Information Technology, is engaging with international stakeholders to better understand the risks posed by advanced AI models and their potential misuse, including the possibility of exploiting software vulnerabilities.
Recent reports have suggested that such models could significantly enhance coding capabilities, potentially disrupting sectors like IT services by improving efficiency but also increasing risks if misused.
Strong fundamentals but evolving risks
The Finance Minister emphasised that India’s banking system remains resilient, supported by sustained digitisation, regular upgrades, and robust security protocols. However, she cautioned that AI-driven threats represent a new and less understood challenge that requires continuous adaptation.
Broader economic context
Addressing related issues, Sitharaman noted that India’s strong fiscal position and healthy foreign exchange reserves provide policy flexibility to the Reserve Bank of India. She reiterated that this allows room for continued capital expenditure, potential rate adjustments, and targeted support to affected sectors.
She also acknowledged global uncertainties, including tensions in West Asia and disruptions around the Strait of Hormuz, which could impact crude oil prices. “These are constantly evolving challenges, and each will be addressed in its own context,” she said.
The Finance Ministry said the ongoing consultations and measures are aimed at ensuring that India’s banking sector remains secure, resilient, and future-ready in the face of rapidly advancing technologies.
(With agency inputs)
