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India’s banking sector is facing growing cybersecurity concerns following a series of reported data breaches, unauthorised transactions and attacks involving financial institutions. Since July 2026, at least seven banks, including the State Bank of India (SBI), have reportedly faced cybersecurity incidents, prompting the Reserve Bank of India (RBI) to issue advisories strengthening security controls and incident response measures.
Cybersecurity experts have warned that growing connections between banks, fintech companies and third-party service providers are creating additional opportunities for attackers to exploit weaknesses in financial systems.
Which Indian Banks Have Reported Cybersecurity Incidents?
Several major financial institutions have faced separate cybersecurity concerns involving customer information, payment systems and unauthorised financial transactions.
In October, SBI acknowledged concerns over customer information reportedly appearing on the dark web. Chairman C.S. Setty said the bank had received alerts from cybersecurity agencies and was examining the matter.
A preliminary examination of approximately 3.75 lakh records identified 3,897 customer records containing personal information. The exposed details reportedly included names, mobile numbers, dates of birth, email addresses, residential addresses and information connected to loans.
Bank of Baroda also faced allegations involving the exposure of nearly one terabyte of sensitive information. The reportedly exposed material included customer photographs, signatures, contact details, loan records and financial documents.
The bank said the incident originated from a compromised employee email account that allowed unauthorised access to certain information. However, it maintained that its core banking systems remained secure.
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Central Bank of India faced a separate incident in October involving unauthorised transfers of ₹13.97 crore between October 15 and 17. Reports indicated that attackers bypassed the core banking system and submitted forged payment instructions through the Structured Financial Messaging System.
The bank said customer accounts were unaffected and its core banking infrastructure remained intact.
How Are Hackers Exploiting Banking and Fintech Systems?
Security experts have identified third-party connections as a significant weakness in the financial ecosystem.
Banks increasingly use application programming interfaces (APIs) to connect with non-banking financial companies, fintech platforms and other service providers. These connections support financial transactions and information exchange but can also become targets for cybercriminals.
In October, attackers reportedly compromised payment connections linking ICICI Bank systems with non-banking financial companies. The incident allegedly involved more than 700 unauthorised instant loan transfers worth approximately ₹17 crore. The bank’s internal servers were reportedly not directly breached.
Separately, reports alleged that YES Bank had suffered losses of approximately ₹32 crore in a cyber fraud incident involving government accounts.
YES Bank rejected those claims as factually incorrect, maintaining that it had suffered no financial loss and that its systems had not been compromised.
Cybersecurity specialists have cautioned that weaknesses in third-party platforms can expose financial institutions even when their primary banking infrastructure remains secure.
What Measures Are RBI and Banks Taking?
The RBI has issued advisories urging regulated financial institutions to strengthen technology security and improve their response to suspected compromises.
Under its October 19 advisory, institutions were instructed to treat technology environments as compromised when credentials were exposed or unauthorised access was confirmed, until forensic examinations established otherwise.
CERT-In has also warned about stolen credentials, exposed payment APIs and weaknesses in internet-facing systems being exploited for unauthorised financial transfers.
Security experts believe financial institutions must continuously improve software patching, authentication controls, monitoring and third-party risk management.
SBI has also established its Cyber Resilience, Integrity and Security Centre of Excellence to strengthen cybersecurity capabilities and encourage cooperation across the banking and financial services sector.
The incidents underline the need for stronger oversight of digital banking infrastructure as financial institutions become increasingly dependent on interconnected technology platforms.
About the author — Ayesha Aayat writes on cybercrime, digital safety, and emerging online threats. Her work focuses on public awareness, legal clarity, and technology-driven risks.
