The Reserve Bank of India (RBI) has developed a comprehensive 10-point plan aimed at reinforcing cybersecurity in financial transactions. As part of this plan, discussions have been initiated with technology giants such as Google and Apple to ensure the security of mobile devices. Additionally, the plan involves incorporating artificial intelligence (AI) and machine learning (ML) in the design of cybersecurity measures. Meanwhile, the National Payments Corporation of India (NPCI) has reported a decrease in the ratio of fraud to sales and the number of Unified Payment Interface (UPI) users affected by fraudulent activities.

Recently, representatives from the Finance Ministry, Home Ministry, RBI, and NPCI, among other institutions, presented strategies to the Committee on Finance for enhancing cybersecurity in the financial sector. A source revealed that RBI officials provided detailed information about the upcoming year's action plan. Another source stated that due to the increasing number of financial transactions conducted on portable devices like mobile handsets, it is crucial to bolster the security of such devices. To facilitate efficient reporting of fraudulent transactions across banks, the Indian Cybercrime Coordination Centre (I4C), established by the Home Ministry, would be involved. They plan to achieve this through a cyber-crime reporting portal. The I4C serves as a framework and ecosystem for law enforcement agencies dealing with cybercrime. Given that AI and ML are being utilized by both legal activities and criminal endeavors, the cybersecurity plan incorporates their adoption. Other elements of the plan include direct engagement with IT service providers of regulated entities, evaluating fraud risk management solutions, and establishing a security operations centre (SOC) across banks. An SOC functions as a command centre for information technology professionals specializing in information security. They monitor, analyze, and safeguard organizations from cyber-attacks and other vulnerabilities.

An essential aspect of the action plan involves expanding the implementation of newer tools such as phishing simulations and cyber reconnaissance exercises to cover a wider range of supervised entities. Additionally, recognizing the growing significance of cooperative banks, efforts will be made to enhance cyber skills in urban co-operative banks. In the NPCI's presentation, it was highlighted that despite an increase in the value and volume of UPI transactions, fraud incidents have decreased. This is significant considering that UPI consolidates multiple bank accounts into a single mobile application, merging various banking functionalities, seamless fund routing, and merchant payments. The Committee members were informed that UPI volume and value have witnessed substantial growth in the past five years, while the fraud-to-sales ratio has declined. On the other hand, card transactions have remained stagnant.