Public sector banks, which are considered straggler in the digital space, are pulling up their socks in cyber insurance. Many commercial banks are rushing to buy insurance for threats such as hacking, including data loss and associated liabilities.
This comes in the wake of the Reserve Bank of India tightening reporting for banks, which for long ignored cyber threats, as well as a greater realisation among banks about the potential dangers of living in a digital world without cover. In the wake of demonetisation and the increased push ongoing digital, banks are seeking cyber insurance policies with the growing perception of threats and high-profile cyber-related incidents. The recent malware attack on Hitachi Payment Services affected 3.2 million debit cards across banks. While the exact claim amount has not been ascertained, industry officials said figures ranging from Rs 10 crore to Rs 100 crore are floating around.