Regulators engage banks on AI-driven cyber risks to payment systems

The rise of AI is reshaping cyber risk in banking. Regulators are now engaging directly with lenders to assess preparedness against emerging threats tied to advanced systems, signalling heightened scrutiny of how technology intersects with financial stability.

Banks are expected to brief government stakeholders on existing cybersecurity frameworks and outline measures to strengthen resilience. The focus is squarely on critical infrastructure—particularly payment systems that underpin India's financial plumbing.

This engagement reflects growing regulatory attention to AI-related cyber risks that traditional frameworks may not yet address. As advanced systems become embedded in banking operations, new attack vectors and failure modes demand fresh consideration.