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India plans central tech back office for rural banks as AI cyber threats grow fast
India
Published on 14 May 2026
The hub is being designed specifically against AI misuse
India is exploring a centralized back-office tech hub for Regional Rural Banks (RRBs) to accelerate digital services while tightening cybersecurity and compliance. National Bank for Agriculture and Rural Development may lead, using shared digital platforms, analytics, common procurement and knowledge exchange with sponsor banks. The move follows concerns flagged in a high-level meeting chaired by Finance Minister Nirmala Sitharaman about AI-driven weaponisation of software vulnerabilities. RRBs reported ₹7,720 crore consolidated net profit in nine months of FY26, alongside faster loan growth.
- Centralized back office for 28 Regional Rural Banks is being discussed
- NABARD may lead the initiative with shared digital platforms and analytics
- Efforts will include enhanced cybersecurity and compliance capabilities
- Sponsor banks hold up to 35% and could deepen shared support
- Government is also reviewing an EASE-like reform framework for RRBs
- RRBs posted ₹7,720 crore consolidated net profit in first nine months of FY26
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times