Public sector banks scale up IT spending amid AI cybersecurity threats. Indian banks are significantly increasing information technology investments to combat emerging risks from advanced AI systems like Anthropic's Claude Mythos. The AI tool's sophisticated coding capabilities pose unprecedented threats to banking infrastructure by detecting and exploiting security vulnerabilities. Punjab and Sind Bank and UCO Bank have announced higher IT budgets for the current financial year, with cybersecurity as a priority. Finance Minister Nirmala Sitharaman has urged banks to implement preemptive security measures. Industry experts warn that banks must shift from viewing IT as operational cost to survival cost, as vulnerability disclosure to weaponization timelines have compressed dramatically from nineteen days in 2023 to under seventy-two hours today.
