Banks meet Finance Minister; cyber risks from Anthropic's Mythos likely on agenda: Sources - CNBC TV18

Finance Minister meets bank chiefs over AI risks, as RBI and NPCI assess Anthropic Mythos impact on cybersecurity and the financial system.

Senior executives of public sector banks and other lenders met Finance Minister on Thursday (April 23) to discuss risks arising from artificial intelligence, including its potential to act as a disruptor for the financial sector, according to sources.

The discussions included concerns around cybersecurity threats linked to Anthropic's new AI model "Mythos", with apprehensions that such systems could make it easier to identify and exploit software vulnerabilities.

Sources added that the Reserve Bank of India (RBI) is engaging with banks, government stakeholders and global central banks to assess risks associated with AI models such as Mythos and their possible impact on the financial ecosystem.

The National Payments Corporation of India (NPCI) is also said to be seeking early access to Mythos ahead of its rollout to evaluate potential risks for the payments infrastructure.

Sources further indicated that discussions are at an early stage and are aimed at assessing risks before incorporating them into guidelines governing banks' engagement with AI systems.

Meanwhile, the Department of Financial Services (DFS) issued its first official comment on "Mythos", with Secretary M Nagaraju, stating that the financial system must remain resilient and strong amid emerging technological shifts.

He said technology, including AI, will play an increasing role in the sector and can enable more lending through AI-driven underwriting.

Nagaraju said AI should not be viewed only as a disruptor but as an enabler, adding that governments, regulators and technology providers need to work in closer alignment than ever before.

He further noted that policy frameworks must remain flexible while addressing risks, including cybersecurity threats and market volatility, to sustain growth.

Highlighting broader macroeconomic context, he said global headwinds have persisted over recent years, but India continues to stand out amid uncertainty and is emerging as a leader in digital public infrastructure, with UPI accounting for over 88% of digital payments last year and expanding internationally.

It must be noted "Mythos" has raised concerns among policymakers globally, with regulators in the US, UK and Canada recently stepping up coordination to assess potential risks from the model and strengthen bank cybersecurity defences.

In the US, authorities including the Treasury and Federal Reserve are said to have recently engaged major Wall Street banks on the issue, encouraging them to test AI tools internally to identify system vulnerabilities.

Firms such as JPMorgan Chase, Goldman Sachs and Citigroup are among those evaluating or preparing to test such models under controlled environments.