MUMBAI: The banking industry is working on a coordinated response to rising cybersecurity risks, with banks looking to establish a structured mechanism for sharing information on cyber incidents and an industry-level sandbox to test frontier artificial intelligence (AI) models in a regulated environment.State Bank of India chairman CS Setty said Indian Banks’ Association (IBA) was working on both initiatives to help lenders identify vulnerabilities and respond faster to emerging threats.“As more and more digitalisation happens, the digital surface area is increasing. What we call attack surface area is increasing. And the security and digital adoption need not be mutually exclusive,” said Setty. He said govt, public sector institutions and private entities were collectively working to ensure that cyber incidents did not undermine trust in digital systems.
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IBA had also developed a comprehensive framework to address AI-related cybersecurity concerns. However, Setty said, a key priority was to strengthen information sharing across banks and financial institutions.While incidents were already being reported to regulators and security agencies, a structured mechanism to alert other banks as soon as an incident occurred would enable them to take preventive measures immediately. “This is something that we are seriously working under the IBA,” he said.The other initiative involves creating an industry-level sandbox where frontier AI models can be tested in a regulated and controlled environment.
