Department of Financial Services Secretary M Nagaraju on Thursday urged banks to prioritise cybersecurity and operational resilience to counter emerging risks, including those from artificial intelligence (AI). “For example, Anthropic’s Mythos AI model has raised global cyber security concerns due to its advanced capability to identify and potentially exploit these systems,” said Nagaraju, while speaking at Indian Banks’ Association (IBA) summit on risk management.
He added that one successful cyber attack can cascade quickly across institutions and markets. “I hope this responsibility of understanding and taking proactive action has been given to the IBA, and chairman of IBA has specifically given the responsibility. I hope the banking community is prepared well to face Mythos in case it is released publicly in the country.”
He highlighted the evolving role of technology in risk management. Though technological advancements such as digital payments, AI, and cloud infrastructure offer new opportunities, they must be adopted with appropriate safeguards, he said.
Speed and scale should not come at the cost of governance and control, the government official stated. “As banks increase their reliance on digital channels, fintech partnerships, outsourced service providers and complex technology architecture, they must ensure strong oversight, robust controls, cyber preparedness and clear accountability.”