The Reserve Bank of India (RBI) has intensified its cybersecurity oversight of banks, requiring lenders to demonstrate that their digital infrastructure and application programming interfaces (APIs) connecting them with fintech companies and non-banking financial companies (NBFCs) are adequately secured.

The central bank is placing greater emphasis on robust authentication mechanisms, real-time fraud monitoring, regular security testing and stronger oversight of third-party service providers following reported cyber incidents in the financial sector.

Under the strengthened scrutiny, banks are expected to provide evidence that their cybersecurity safeguards are not only in place but are also effective in real-world operations. The regulator is also urging financial institutions to strengthen their preparedness against emerging cyber threats, including attacks powered by artificial intelligence (AI).

The increased focus could result in more stringent cybersecurity audits, tighter controls on fintech partnerships and integrations, and greater accountability for banks in ensuring compliance with security requirements.

The move highlights the growing importance of cybersecurity as India’s financial sector continues to expand its digital banking services and partnerships with technology-driven financial institutions.