Core Insights - The Reserve Bank of India (RBI) emphasizes that banks should not solely depend on third-party service providers for outsourced solutions, highlighting the need for a deeper understanding of technology and associated risks [1][2] Group 1: Digital Transformation and Risks - Banks are increasingly moving operations to cloud and third-party platforms, which raises concerns about concentration risk when multiple banks rely on the same provider [2] - A single technical glitch can now affect millions of customers, contrasting with past scenarios where issues were localized to individual branches [2][5] Group 2: Incident Management - The real challenge for banks is not if incidents will occur, but how quickly and effectively they can detect, contain, and recover from such incidents [3] - Major banks have faced significant outages this year, underscoring the importance of robust incident management strategies [3] Group 3: Past Incidents - Notable past incidents include a January 2025 outage at Barclays affecting over 20 million customers and disruptions at State Bank of India (SBI) in April 2025 [4] - The Unified Payments Interface (UPI) also experienced multiple outages, with a significant five-hour disruption on April 12, affecting inter-bank transfers and merchant payments [5] Group 4: IT Resilience and Cyber Fraud - While banks have invested in systems to detect suspicious transactions, technology alone is insufficient to combat cyber fraud [6] - Collaborative efforts, including sharing fraud typologies and working with law enforcement, are essential for enhancing IT resilience [6]