Cybersecurity Drill Marks a New Era for Rural Banking in India

An Unprecedented Gathering

This week in Lucknow, approximately 100 officials from 42 rural financial institutions came together for a groundbreaking cybersecurity drill. Spearheaded by India’s leading rural banking and cyber agencies, the initiative aimed to address the rapidly changing digital threat landscape facing these institutions.

A Unified Approach to Cybersecurity Threats

Held at the Bankers Institute of Rural Development (BIRD), the event took place on February 23 and 24, 2026. Under the expert guidance of Dr. Nirupam Mehrotra, Director of BIRD, and Dr. Sanjay Bahl, Director General of CERT-In, the drill simulated real-time cyberattacks. Participants witnessed scenarios where servers were compromised, internal communications were disrupted, and digital payment systems were immobilized.

Titled “Building Cyber Resilience in Regional Rural Banks and Rural Cooperative Banks,” this initiative represented a concerted effort among BIRD, CERT-In, and the Department of Supervision at NABARD. Over the two-day event, attendees engaged in what organizers called a milestone initiative, set against the backdrop of a landscape where digital services have surged, bringing both remarkable efficiency and new security vulnerabilities.

Transitioning to Cyber Resilience

In his opening remarks, Dr. Nirupam Mehrotra emphasized that strengthening cyber resilience is crucial for safeguarding financial institutions. He called for a shift away from mere compliance and audits, advocating for ongoing development, structured initiatives, and practical drills that accurately represent potential real-world conditions.

The keynote speech from Shri Ashutosh Bahuguna, Additional Director at CERT-In, highlighted national cybersecurity priorities and emerging threats. He stressed the importance of moving from traditional compliance-focused security approaches to comprehensive resilience frameworks designed to withstand and recover from attacks.

Technical sessions were led by seasoned CERT-In officials who presented on crucial topics like Cyber Crisis Management Planning, implementing defense controls, and establishing effective incident response mechanisms. These sessions coupled theoretical learning with hands-on, scenario-based exercises, allowing participants to practically engage with the material.

Practical Drills and Oversight

At the heart of the program was a Cybersecurity Threat Simulation and Technical Drill, crafted to offer participants direct exposure to simulated cyber incidents. Teams navigated staged attack scenarios, focusing on collaboration and technical troubleshooting to respond effectively.

Through these drills, emphasis was placed on incident response coordination, requiring teams to identify security breaches, manage damage containment, and restore systems within set time limits. The exercises aimed to enhance decision-making abilities under stress while bolstering the technical skills of individual institutions.

Guided by Dr. Sriram Appulingam, Joint Director at BIRD, and coordinated by faculty members Shri Ravi Chandra Yadav and Shri Anuj Kumar Singh, the drill was designed to blend education with practical application. NABARD officials, including Shri Sanjeev Kumar and Dr. Nalin Rai, actively engaged in the sessions, linking the learnings to regulatory expectations and ensuring that institutional strategies were aligned with oversight frameworks.

A Digital Shift in Rural Banking

This timely drill highlights the challenges confronted by rural financial institutions as they adapt to an increasingly complex digital environment. With the expansion of digital payment services, the associated risk of cyber threats has considerably increased.

The exercise was framed within NABARD’s larger strategic vision for enhancing cyber resilience, promoting responsible digital transformation across the rural financial ecosystem. Organizers noted that this was the first collaborative effort of its kind between CERT-In, BIRD Lucknow, and NABARD’s supervision department.

Attendance at the event included representatives from institutions across the nation. The long-term goal is to ensure that all rural cooperative and regional rural banks participate in similar training sessions, reinforcing a culture of preparedness uniformly.

During the program, participants engaged with domain experts, addressing operational challenges unique to their institutions. The interaction was aimed at bridging the disconnect between national cybersecurity agendas and the practical realities faced by local banks.

Throughout the drill, organizers highlighted the significance of institutional readiness over isolated technical fixes. The cultivation of a collaborative response, effective crisis management, and a culture of cybersecurity awareness across all banking operations emerged as essential themes.

As the participants wrapped up the drill, the simulation evolved from breach detection to damage containment and system recovery, encapsulating the full lifecycle of a cyber incident. For many institutions involved, this experience offered a valuable opportunity to evaluate existing procedures against realistic threats. For NABARD and CERT-In, the initiative signified a step toward grounding resilience in the governance of rural banking.

As India’s financial landscape continues to evolve digitally, events like the Lucknow cyber drill provide a clear indication that the stability of rural banking increasingly hinges on the integrity of their digital systems. Investing in preparedness is no longer just an option; it’s a vital necessity in today’s threat-filled environment.