Union Finance Minister Nirmala Sitharaman today raised concerns over emerging artificial intelligence (AI)-led risks to the banking system, urging lenders to adopt a more coordinated and advanced approach to tackle evolving threats.
Speaking after a meeting with bank chiefs on AI-related risks, Sitharaman said that while Indian banks have historically remained well-equipped to deal with challenges due to strong digitisation, the nature of new-age threats requires a more sophisticated response.
“It has always been that the banks in India, because of greater digitisation happening, that we are adequately equipped to meet any challenges and risks. Now, because of the new challenge which is coming in the name of Mythos, about which not much is known, MeitY has an active engagement with tech companies, various authorities and governments across the globe to understand how this will play out and the preparedness needed,” she said.
The Finance Minister emphasised that existing safeguards may not be sufficient to deal with next-generation AI threats. “All the while, what we have and proved ourselves to be that we are protective, might not be enough. We need something far more versatile,” she added.
To address the issue, banks have been asked to work together, with the State Bank of India (SBI) chairman tasked with leading a coordinated industry-wide effort. Sitharaman noted that discussions and collaboration among banks will intensify in the coming weeks, particularly around leveraging AI itself to counter AI-driven risks.
“The banks have been told to work together. Chairman SBI will be leading this effort. In the coming weeks, there will be a lot of interaction between the banks and how AI itself can be used to counter this AI-born challenge,” she said.
What is the ‘Mythos’ concern?
While details around “Mythos” remain unclear, banking and technology experts broadly interpret such emerging AI threats as advanced systems capable of analysing, mimicking, or exploiting internal financial data ecosystems.
Potential risks include:
- Unauthorised access or inference of sensitive internal banking data through AI-driven pattern recognition
- Sophisticated fraud and deepfake-based attacks, including impersonation of customers or officials
- Automated exploitation of system vulnerabilities across interconnected banking networks
- Data leakage risks from AI models trained on sensitive or proprietary datasets
These risks are particularly significant as banks increasingly rely on digital platforms, cloud infrastructure, and AI-led decision-making systems, making cybersecurity more complex.
The government, through the Ministry of Electronics and Information Technology (MeitY), is already engaging with global stakeholders to assess the evolving threat landscape and develop appropriate safeguards.
Sitharaman’s remarks signal a shift in regulatory focus—from traditional cybersecurity frameworks to AI-resilient systems—highlighting the need for banks to not only defend against threats but also proactively deploy AI tools for detection, monitoring, and response.
Disclaimer: This article is based on official statements and publicly available context around AI risks in banking. It is for informational purposes only.