Cybercrime And Indian Banking Sector: A Critical Analysis
- IJLLR Journal
- 9 hours ago
- 1 min read
Marisha Shandilya, Advocate at Patna High Court
ABSTRACT
The rapid digital transformation of the Indian banking sector has revolutionized customer experience through enhanced accessibility, convenience, and efficiency. However, this technological advancement has also introduced complex cybersecurity challenges. The growing reliance on online transactions, mobile banking, and digital payment systems has made financial institutions prime targets for cybercriminals. The anonymity, global reach, and sophistication of modern cyberattacks especially those driven by artificial intelligence and deepfake technologies have significantly increased the risk of financial fraud and data breaches. Despite the Reserve Bank of India’s proactive measures, including the Cyber Security Framework for Banks and adherence to ISO/IEC standards, vulnerabilities persist due to evolving attack methodologies and limited consumer awareness. The Digital Personal Data Protection Act, 2023, further strengthens the legal framework, yet the effectiveness of these measures relies on their consistent enforcement and the active participation of financial institutions. Strengthening cybersecurity architecture through continuous technological upgrades, employee training, AI-driven fraud detection, and public awareness campaigns is essential to safeguard trust and resilience in India’s digital banking ecosystem. The study concludes that while digitalization drives economic growth, it also amplifies the risk landscape, necessitating a balanced approach that promotes innovation without compromising security.
Keywords: Cybersecurity, Digital Banking, Fraud, RBI Regulations, Artificial Intelligence
