The Reserve Bank of India (RBI) has identified AI Cyber Attacks as the biggest near-term cybersecurity threat facing the Indian banking system, according to the June 2026 edition of its Financial Stability Report (FSR). The central bank's latest assessment highlights that while banks and financial institutions have strengthened cyber risk management practices, rapid advances in artificial intelligence are making cyber threats more difficult to counter.

The findings are based on a survey conducted by the RBI to assess the preparedness of major banks and non-banking financial companies (NBFCs) against evolving cyber risks. The survey found that institutions have established robust cybersecuri...