India, Oct. 30 -- The Reserve Bank of India (RBI) has tightened its cybersecurity audit of banks and financial institutions post data breaches, suspected hack attacks, and money fraud through illicit fund transfers. The RBI wants to know about the lenders' compliance with existing cybersecurity standards, readiness for AI-based security risks, and safeguards for banking systems from such issues, say three sources privy to the developments.

The move by the regulator comes at a time when there is concern about how hackers are now resorting to use of AI technology to breach cyber security, steal consumer data, and conduct unauthorized operations. The RBI has also asked banks to review API weaknesses as they facilitate connections between ba...