Nirmala Sitharaman has raised concerns over potential cybersecurity risks to India’s banking sector from advanced artificial intelligence systems, including models developed by Anthropic. The issue was discussed during a high-level meeting with bank heads and key stakeholders.

Officials noted that such AI systems are capable of identifying deep vulnerabilities in digital infrastructure, raising fears that they could be misused for cyberattacks if accessed by malicious actors. The government described the emerging threat landscape as increasingly complex, calling for heightened vigilance and stronger preparedness across financial institutions.

To address these risks, banks have been advised to strengthen cybersecurity frameworks and adopt proactive measures to safeguard customer data and critical systems. The finance ministry has also recommended establishing robust mechanisms for real-time threat intelligence sharing among banks and relevant agencies.

Authorities are working on a coordinated institutional response to ensure faster detection and mitigation of cyber threats. Banks have been urged to collaborate closely with cybersecurity experts and government bodies to enhance resilience against evolving risks.

The development comes amid growing global scrutiny of advanced AI technologies and their cybersecurity implications, as financial systems become more digitised and interconnected.