During an event in Maharashtra, Sitharaman acknowledged that while artificial intelligence presents unique challenges, it can also serve as a valuable tool in combating emerging cyber and financial threats. She urged banks to collaborate and invest in new technologies to mitigate future risks.
The Finance Minister stated that India’s banking system is well-equipped to handle technology-related risks, noting that cases of fraud generally stem from individual misuse rather than systemic technology failures.
She assured that both banks and the government act swiftly in response to any irregularities.
Regarding “Mythos,” she highlighted that the Ministry of Electronics and Information Technology is actively working on preparedness and mentioned that banks have been encouraged to collaborate, with increased interactions planned in the near future.
Sitharaman asserted that the banking sector must advance its security systems further. She announced that a high-level committee will be established to recommend how to reshape India’s banking system as part of the India@2047 vision.
Discussing the broader economy, she noted stable domestic consumption and satisfactory export performance as businesses explore new markets. She reiterated the significant role banks play in supporting these businesses.
The Finance Minister indicated that there is currently no immediate plan to alter the merchant discount rate (MDR) for digital payment systems like UPI. She also confirmed that the disinvestment process for IDBI Bank will proceed despite a brief hiatus.
Additionally, she mentioned that India is closely monitoring global developments, including geopolitical and trade-related challenges, and will respond appropriately as necessary.
At the same event, SBI Chairman Challa Sreenivasulu Setty remarked that India “stands out as a centre of resilience.”
DFS Secretary M Nagaraju commended the Finance Minister for guiding the system towards an inclusive banking framework, highlighting the State Bank of India as “not merely a bank, but an institution,” given its extensive scale and reach.
