Amid escalating border tensions between India and Pakistan, Finance Minister Nirmala Sitharaman has directed banks to ensure seamless cash availability at ATMs and uninterrupted UPI services. This directive comes as a response to the heightened security concerns and the need to maintain financial stability during challenging times. The move aims to prevent any disruptions in banking services and to reassure the public of the government's commitment to economic stability.
The Finance Minister chaired a high-level meeting with the Managing Directors and CEOs of both public and private sector banks and insurance companies to review the banking sector's operational and cybersecurity preparedness. The meeting addressed emerging security concerns arising from the tensions at the border. Sitharaman stressed the critical role of the banking and financial sector in maintaining economic stability during such times.
Sitharaman directed all banks to remain fully alert and prepared to handle any eventuality or crisis, ensuring that banking services remain uninterrupted. She also instructed banks to conduct regular audits of their cybersecurity systems and data centers. This is to ensure that all digital and core banking infrastructure is fully firewalled and monitored around the clock to prevent breaches or any hostile cyber activity. The Finance Minister also instructed banks to designate two dedicated senior officials at their headquarters. One officer will be responsible for reporting all cyber-related matters, and the other will ensure operational matters, including the functioning of bank branches and the availability of cash in ATMs. These officers are to report any incident to CERT-In (Indian Computer Emergency Response Team) and relevant government agencies in real-time. Banks were also asked to coordinate with the Reserve Bank of India (RBI), CERT-In, and other government agencies to ensure robust and agile information exchange and response.
Several banks, including the State Bank of India (SBI) and Punjab National Bank (PNB), have already taken steps to reassure the public that their ATMs and digital banking services are fully operational. These banks have countered online rumors of disruptions and have emphasized their commitment to providing seamless banking experiences. Banks have also been reinforcing security at their branches near the border and ensuring the safety of their staff. ATMs in border regions have been replenished with additional cash to avoid inconvenience for residents in case of escalation.
The government is taking misinformation seriously and is prepared to block any content or account that propagates false information related to the strikes and the current situation. This is to prevent public panic and maintain trust in the banking system.
These measures are part of a broader effort to maintain economic and financial stability as military tensions rise. The focus is on fortifying digital infrastructure and public trust to prevent undue speculation or cash hoarding. The government's proactive approach aims to ensure that citizens have access to essential banking services, even in the face of escalating geopolitical tensions.
The recent increase in tensions between India and Pakistan follows a terrorist attack in the Baisaran Valley of Jammu and Kashmir, which resulted in the death of many civilians. India has responded with strikes on terror camps in Pakistan and Pakistan-occupied Kashmir, leading to further escalation.
