An Analytical Study of the Economical Setbacks faced by the Indian Banking Sector Due to the Surge of Cyber Crimes

The introduction of technology and its astronomical use in the society proves to be both a boon and a bane. The 21st century is already known to be the age of advanced technology where the newly invented technologies aim at providing easier standards of living. This advancement of technology simultaneously leads to the growing concern of its misuse against an individual or the society at large. The ever-evolving nature of the Internet of Things (IoT) backed by evolving technologies creates a breeding ground for the cybercrime perpetrators. The rise in technology has left no sector untouched and one of these sectors comprise of the Banking Industry. The banking industry in India forms the backbone of the economy of the nation. The Indian Banking sector has undergone various transformations and one of the significant transformations is the digitization of this sector. With the increase of digitisation of the banks, this sector simultaneously witnessed the surge of cybercrimes making its headlines not only in India but worldwide. This article aims to focus upon the vulnerabilities of the banking sector against the rampant increase of cybercrimes which ultimately leads to the economic losses to a large extent. With India set to become a 5.7 trillion-dollar economy by 2028, according to Economic Times, increasing number of cybercriminal activities pose a potential threat to India’s economy. This article aims to highlight the economic setbacks faced by the Indian Banks due to the increasing surge of cybercrimes and evaluate the legal framework along with the strategies to mitigate the risk of cybercrimes in the Indian Banking sector.