Indian Banks Minimally Affected By Global Technology Disruption: RBI
Date
7/20/2024 2:12:46 PM
(MENAFN- KNN India)
New Delhi, Jul 20 (KNN)
The Reserve bank of India (RBI) reported on Friday that the Indian financial sector remained largely insulated from the recent global technology outage that significantly impacted major services worldwide.
According to the central bank, only ten Indian banks and non-banking financial companies (NBFCs) experienced minor disruptions, which have either been resolved or are in the process of being addressed.
The RBI statement emphasised that critical systems of most banks in India are not cloud-based, and only a few utilise the CrowdStrike tool, which was at the centre of the global disruption.
As a precautionary measure, the banking regulator has issued an advisory to its regulated entities, urging them to take necessary steps to maintain operational resilience and continuity.
Several major financial institutions in India reported no significant impact on their operations.
Other public sector lenders, including Canara Bank and Bank of India, indicated that their operations continued normally, attributing this to their non-reliance on the affected CrowdStrike software.
Notably, India's Unified Payments Interface (UPI), a crucial digital payments platform, maintained uninterrupted service throughout the global tech disruption.
While the RBI did not disclose the names of the affected institutions, it assured that the overall impact on the Indian financial sector was minimal.
The central bank's proactive approach in assessing the situation and issuing timely advisories demonstrates its commitment to maintaining the stability and resilience of India's financial infrastructure in the face of global technological challenges.
This incident underscores the importance of robust IT systems and diversified technological infrastructure in the financial sector, particularly in an increasingly interconnected global economy.
(KNN Bureau)
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