Banks must tighten cyber security and operational resilience to prepare for threats posed by AI models like Mythos: Nagaraju

Image showing DFS Secretary M Nagaraju | Photo Credit:
Rajmohan S _12122@Chennai

On Thursday, DFS Secretary M Nagaraju called on banks to bolster their cyber defenses and operational resilience, warning that advanced AI models like Anthropic Mythos could threaten the banking sector if made public.

“I hope the banking sector is ready should Mythos become publicly available in India,” Nagaraju remarked during an Indian Banks’ Association (IBA) risk‑management conference in Mumbai.

He noted that the Anthropic Mythos AI model possesses sophisticated abilities to detect and possibly exploit weaknesses, raising concerns among regulators due to the fragility of legacy banking IT.

Nagaraju emphasized that banks and financial institutions stay highly exposed owing to their interconnected networks, reliance on outdated IT infrastructure, and the need for real‑time processing.

“A single successful cyber breach can spread rapidly across institutions and markets,” he warned, underscoring that operational continuity is now vital to financial stability.

Nagaraju urged banks to continually test their resilience, upgrade incident‑response mechanisms, boost cyber investments, and keep business‑continuity plans practical, current, and regularly drilled.

He highlighted that risk extends beyond trade books and balance sheets, now stemming from geopolitical events, cyber threats, operational disruptions, fraud, third‑party reliance, climate factors, market volatility, and shifting customer behavior.

“In this context, risk management should not be treated as a mere add‑on to compliance or control; it must be regarded as a strategic capability,” he stated.

Nagaraju observed that India’s banking sector has advanced considerably in recent years, boasting stronger balance sheets, better asset quality, solid capital cushions, and improved governance standards.

Published on May 7, 2026