Cybersecurity has emerged as the most pressing operational risk for Indian banks. With UPI, net banking, and mobile payments expanding rapidly, threats such as phishing, malware, insider fraud, and AI-driven attacks are escalating. For Punjab National Bank (PNB), one of the country’s largest public sector lenders, safeguarding customer trust and financial stability is critical.
Executive Director M. Paramasivam announced that PNB has set aside ₹400 crore for cybersecurity, recognizing resilience as a core priority.
The bank has cut fraud resolution time from four hours to just 60 seconds, preventing losses and already saving more than ₹250 crore. This reflects a shift toward proactive protection rather than post-incident recovery.
PNB also manages broader risks. All foreign exchange and interest rate exposures are fully hedged, reducing vulnerability to market volatility.
Audits now close only after 100% rectification, a governance move ensuring no gaps remain unresolved and strengthening accountability across operations.
This approach elevates cybersecurity to the same level as asset quality and capital adequacy. It demonstrates how AI-driven, real-time monitoring can transform banking operations and justify large-scale investment.
PNB’s ₹400-crore allocation highlights that cybersecurity is no longer an IT expense but a strategic imperative. The gains are clear, yet the challenge lies in adapting continuously to evolving threats and regulatory expectations.
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