Insurance companies must give timely claim settlements and uninterrupted customer service: FM Smt. Sitharaman

Smt. Nirmala Sitharaman, today, convened a high-level meeting with the Managing Directors and CEOs of Public and Private Sector Banks and insurance companies amidst emerging security concerns arising from tensions at the border.

Senior officials from the Department of Financial Services (DFS), Ministry of Finance, CERT-In, RBI, IRDAI and NPCI attended the meeting that focused on reviewing the banking sector's operational and cybersecurity preparedness, including digital applications such as internet banking and UPI.

The Managing Directors and CEOs of all the banks and insurance companies apprised the Union Finance Minister about the measures they are undertaking, given the ongoing tensions at the border.

Bank MDs & CEOs informed that cybersecurity measures have been reinforced throughout the banking system. Anti-DDoS (Distributed Denial-of-Service) systems have been implemented by banks to protect against massive cyber-attacks. To guarantee institutional readiness, mock drills have been held encompassing cybersecurity and disaster recovery scenarios at the highest levels.  They apprised that phishing attempts are being actively watched, and staff members have received several internal alerts to increase awareness.

Bank officials stated that their Security Operations Centre (SOC) and Network Operations Centres are fully operational and on high alert. These centres are coordinating closely with CERT-In and the National Critical Information Infrastructure Protection Centre (NCIIPC), facilitating real-time data sharing and threat monitoring.

During the meeting, Smt. Sitharaman stressed on the critical role of the banking and financial sector in ensuring economic stability during heightened geopolitical tensions and challenging times.

The Union Finance Minister directed all banks to remain fully alert and prepared to deal with any eventuality or crisis, ensuring uninterrupted access to banking & financial services for citizens across the country, especially in border areas. Smt. Sitharaman remarked that banking services, both physical and digital, must function without disruption and glitches, and emergency protocols should be updated and tested to handle any arising contingencies.

The Union Finance Minister expressed deep concern about the safety of bank employees and their families working at branches around the border areas and directed banks to ensure their adequate safety by effectively coordinating with the security agencies.

The Union Finance Minister asked banks to ensure that citizens and businesses do not suffer under any circumstances, and priority must be given to seamless cash availability at ATMs, uninterrupted UPI and internet banking services, and continued access to essential banking facilities.

Smt. Nirmala Sitharaman directed banks to conduct regular audits of their cybersecurity systems and data centres and ensure that all digital and core banking infrastructure is fully firewalled and monitored round the clock to prevent breaches or any hostile cyber activity.

The Union Finance Minister instructed banks to designate two dedicated senior officials identified at the headquarters, one for reporting all cyber-related matters and the other to ensure operational matters, including the functioning of bank branches and the availability of cash in ATMs. Both dedicated officers should report any incident to CERT-In / relevant agencies and DFS on a real-time basis.

In this regard, banks were also asked to coordinate in real time with the Reserve Bank of India, CERT-In and relevant Government agencies to ensure robust and agile information exchange and response.

Smt. Sitharaman also directed insurance companies to ensure timely claim settlements and uninterrupted customer service.

The Union Finance Minister mentioned that the Sponsor Banks should ensure that RRBs are well-supported during these times and hand-hold them for any issues that they are facing.

Smt. Sitharaman reiterated that the Government of India is firmly committed to national security and economic stability, and noted that the country’s banking and financial system remain robust and resilient.