Speaking at an event in Maharashtra, Sitharaman said artificial intelligence comes with its own challenges but can also be used as a tool to counter emerging cyber and financial risks. She said banks have been asked to collaborate and invest in new technologies to address future risks.
The Finance Minister said India’s banking system is adequately prepared to tackle technology-related risks and added that instances of fraud are linked to misuse by individuals rather than any systemic technology failure.
She said banks and the government take immediate action in case of irregularities.
Referring to “Mythos,” she said the Ministry of Electronics and Information Technology is actively engaged on preparedness, and added that banks have been advised to work together, with more interactions planned in the coming weeks.
Sitharaman said the banking sector will have to evolve with more advanced security systems. She added that a high-level committee will be formed to suggest how India’s banking system should be refashioned as part of the India@2047 vision.
On the broader economy, she said domestic consumption has remained steady, while exports are “doing alright” as businesses find newer markets. She added that banks have a significant role in supporting businesses.
The Finance Minister said there is no immediate decision on changes to the merchant discount rate (MDR) for digital payments such as UPI. She also said the disinvestment process of IDBI Bank will continue despite a temporary pause.
Separately, she said India is monitoring global developments, including geopolitical and trade-related challenges, and responding as required.
At the same event, SBI Chairman Challa Sreenivasulu Setty said India “stands out as a center of resilience.”
DFS Secretary M Nagaraju said the Finance Minister has guided the system towards an inclusive banking framework and described State Bank of India as “not merely a bank, but an institution,” citing its scale and reach.
