Indian banks warned about technology concentration

Indian banks are increasingly dependent on cloud infrastructure, technology companies and specialised software providers, creating a new type of risk for the financial system. Reserve Bank of India Deputy Governor Rohit Jain has warned that excessive dependence on a small number of technology providers could allow a single disruption to affect several financial institutions simultaneously.

The concern is particularly important as banks continue moving more services online. Digital banking, mobile applications, cloud computing, artificial intelligence and automated risk-management systems have become essential parts of modern financial operations.

According to the RBI warning, a major outage or cyberattack affecting a common technology provider could potentially disrupt multiple banks at the same time. This means that banks need contingency arrangements and should avoid depending too heavily on a single technology ecosystem.

Technology has made banking faster and more convenient, but it has also created new forms of operational risk. Diversifying technology providers, strengthening backup systems and regularly testing disaster-recovery plans can help banks maintain services during major technology failures.

Source: Times of India report on RBI Deputy Governor Rohit Jain's comments, September 10, 2026.

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