AI Cyber Attacks Emerge as Biggest Threat to Indian Banking: RBI

The Reserve Bank of India’s June 2026 Financial Stability Report identifies AI-enabled cyber attacks as the biggest near-term threat to the Indian banking system, noting that while institutions have improved cyber risk management, many remain at developing or intermediate stages of AI-specific preparedness; the report also highlights third-party/supply-chain risk, increased digital transaction exposure, gaps in employee awareness and forensic readiness, and calls for a cross-sector Financial Sector Cybersecurity Strategy to address AI, cloud, quantum and other emerging risks.