Make Sure The Firewalls Are Adequate, FM Sitharaman Tells Banking Sector

Emphasising the crucial role of digital security in the banking landscape which is evolving at a rapid pace, Finance Minister Nirmala Sitharaman has said that banks cannot have a system which gets hacked. Urging the banking sector to build robust systems to protect the trust of the customers, the minister stated that the sector needs to work on having resilient systems.

“You need to have a robust and resilient system, for which every now and then you need to make sure that the firewalls are adequate,” said Sitharaman while speaking at the 90th foundation day of the Bank of Maharashtra on Thursday.

In order to handle digital threats, the minister advised the banking sector to ensure that regular emergency drills are being conducted to check the status of preparedness.

Stressing the need for a strong focus on infrastructure, micro, small and medium enterprise (MSME0 financing and financial inclusion, she highlighted that banks will have to play a crucial role in taking the agenda set by Prime Minister Narendra Modi forward. Sitharaman called for an enhanced focus on expanding digital payments through the unique payment interface (UPI) which makes up 45 per cent of global real-time payments.

Pointing out the need for banks to have robust cybersecurity measures in place, the minister urged the sector to boost their contributions to the critical sectors of the economy. This includes ensuring that infrastructure projects are well-funded and the MSME sector is getting the required assistance to grow. She noted that the sector’s role becomes important when it comes to achieving the dream of Viksit Bharat (developed India) by 2047.

During her address, Sitharaman pointed towards increasing the efforts to bring the unbanked population into the formal banking sector, which is a crucial element as far as inclusive economic growth is concerned.