India’s central bank has warned banks of rising cyberattacks on financial infrastructure, seeking proof of compliance with existing rules and details of their preparedness for AI-related risks, three people familiar with the matter said.
\n\nThe Reserve Bank of India’s (RBI) increased vigilance comes at a time when banks worldwide are being targeted by hackers using sophisticated AI tools, putting customer data and funds at risk.
\n\nRegulators including those in the United States and Britain are stepping up efforts to contain AI risks, Reuters reported earlier this month.
\n\nIn a series of recent meetings, the RBI asked banks to probe weaknesses in application programming interfaces (APIs), the software links banks use to connect with non-bank lenders and fintechs, the three sources said.
\n\nHackers see smaller lenders and non-bank lenders and their third-party vendors as "softer targets", said one of the sources, a person aware of regulatory thinking.
\n\nWhile the RBI has already issued directives to banks on managing cybersecurity risk, implementation lags, said a second source, a consultant working with top banks. This has prompted the regulator to push banks for stronger implementation, the person said.
\n\nThe sources declined to be named because the discussions are not public.
\n\nThe RBI did…
Original source: https://www.cnbctv18.com/technology/
