Union Finance Minister Nirmala Sitharaman has raised fresh concerns over emerging artificial intelligence (AI)-driven threats, highlighting a new and relatively unknown challenge referred to as "Mythos." Following a high-level meeting with bank chiefs, the minister stressed the need for a coordinated and future-ready response from India's banking sector.
Addressing the media after the meeting, FM Sitharaman acknowledged that Indian banks have so far demonstrated strong resilience due to rapid digitisation and robust systems. However, she cautioned that the evolving nature of AI risks demands a more versatile and proactive approach.
"It has always been that banks in India, because of greater digitisation, are adequately equipped to meet challenges and risks. But now, with new challenges emerging in the name of Mythos, about which not much is known, we need to be better prepared," she said.
The Finance Minister noted that the Ministry of Electronics and Information Technology (MeitY) is actively engaging with global technology firms, regulators and governments to better understand the implications of such AI-driven threats and to assess preparedness strategies.
She emphasised that while India's track record in safeguarding financial systems has been strong, existing measures may not be sufficient in the face of increasingly sophisticated AI-based risks. "What we have proven ourselves to be, protective, might not be enough. We need something far more versatile," Sitharaman remarked.
In a significant move, banks have been directed to work collaboratively to address these emerging challenges. The State Bank of India (SBI) will spearhead this initiative, with its chairman leading efforts to coordinate sector-wide responses.
According to the minister, the coming weeks will see intensified engagement among banks, focusing not only on identifying vulnerabilities but also on leveraging AI as a defensive tool. "There will be extensive interaction between banks on how AI itself can be used to counter this AI-born challenge," she added.
The development signals a shift in India's banking strategy, from reactive cybersecurity measures to a more integrated, AI-driven defence framework. As global financial systems grapple with the dual-edged nature of artificial intelligence, India is positioning itself to stay ahead of potential disruptions.
Experts believe that collaborative frameworks and real-time intelligence sharing among banks will be crucial in mitigating risks posed by emerging technologies like Mythos. The government's proactive stance also reflects growing recognition of AI as both an enabler and a potential threat in the financial ecosystem.
With SBI leading the charge and MeitY coordinating international insights, India's banking sector is expected to enter a new phase of digital risk management, one that combines innovation with heightened vigilance.
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