Archive · 3 Oct 2026
RBI Governor Warns War or Cyberattack Could Trigger Financial Crisis
India’s central bank governor says the next big money crisis might start outside banks and markets.
A war, a cyberattack or a technology failure could cause trouble for the financial system.
These problems can spread because parts of the system are connected.
The war in Iran is already putting pressure on India through higher prices for some goods.
Governor Sanjay Malhotra said India is facing these pressures from a position of strength.
Finance Minister Nirmala Sitharaman has said artificial intelligence can help find fraud but can also help attackers.
Malhotra said India’s banks are healthy, but the country should not assume they will always be safe.
The RBI is watching for risks and says financial stability helps the economy work well.
Reserve Bank of India Governor Sanjay Malhotra said a future financial crisis could begin with a geopolitical event, cyberattack or technological failure.
He said shocks outside finance could affect the financial system through multiple channels and spread across interconnected institutions.
Malhotra said the war in Iran is exposing India to higher commodity prices and external-sector pressures, though the economy is navigating the period from a position of strength.
Finance Minister Nirmala Sitharaman has warned that artificial intelligence could help detect fraud but also enable larger, more sophisticated cyberattacks.
The RBI said bad loans at 46 Indian banks could rise to 1.9% of total advances by March 2028, from 1.8% at the end of March this year.
- Who
- Reserve Bank of India Governor Sanjay Malhotra, with related concerns also raised by Finance Minister Nirmala Sitharaman.
- What
- Malhotra warned that geopolitical events, cyberattacks or technological failures could trigger a financial crisis.
- When
- Saturday, at an event in New Delhi.
- Where
- New Delhi, India.
- Why
- To highlight emerging risks to financial stability and the need to understand how shocks could spread through the financial system.
- Speaker
- Reserve Bank of India Governor Sanjay Malhotra
- Potential crisis triggers
- Geopolitical events, cyberattacks and technological failures
- India's exposure
- The war in Iran is contributing to higher commodity prices and external-sector pressures.
- Economic growth
- India's economy expanded 7.8% in the April-June quarter.
- Bad-loan projection
- Bad loans at 46 Indian banks could reach 1.9% of total advances by March 2028, up from 1.8% at the end of March this year.
- Monetary policy timing
- The RBI was due to announce its monetary policy decision on Wednesday.
- Interest-rate expectations
- Most economists expected the central bank to raise rates for the first time since early 2023.