New Delhi: The Finance Ministry recently directed state-owned banks to conduct a comprehensive review of their digital systems and processes.
Government sources reveal that these banks have been specifically instructed to assess the preparedness of their cybersecurity measures and implement necessary measures to enhance their resilience against potential cyber threats.
Bank officials have been advised to maintain a vigilant stance and ensure preparedness to counter future cyber threats, according to sources familiar with the matter.
The Finance Ministry, in collaboration with the Reserve Bank of India (RBI), has been consistently emphasising the importance of cybersecurity to banks, particularly in light of the escalating digitisation trends within the financial sector.
This move comes after the recent incident where a Kolkata-based PSU Bank raised concerns after it reported an incorrect credit of Rs 820 crore to account holders via the Immediate Payment Service (IMPS) last week.
From November 10 to 13, technical issues were discovered in the IMPS system, leading to specific transactions initiated by account holders from other banks crediting the accounts of certain individuals without the actual transfer of funds.
IMPS, known for its real-time interbank electronic funds transfer system, operates without any manual intervention. In response to the incident, the bank promptly blocked the recipient accounts and has successfully recovered Rs 649 crore, equivalent to 79 percent of the erroneously credited amount.
As of now, the bank has not clarified whether the technical glitch was a result of human error or a potential hacking attempt. The bank, however, reported the incident to law enforcement agencies.
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