RBI Governor Warns Cyber Attacks or War Could Trigger Next Financial Crisis

Reserve Bank of India Governor Sanjay Malhotra stated the next global financial crisis will likely originate outside the traditional financial sector. Potential non-financial triggers for a market collapse include major geopolitical events, cyber attacks, or severe technological failures. The RBI explicitly highlighted that India remains exposed to external sector pressures and higher commodity prices stemming from the ongoing war in Iran. Despite these compounding macroeconomic vulnerabilities, Malhotra affirmed the Indian economy is currently navigating this turbulent phase from a position of strength. “It may begin with a geopolitical event, or cyber attack or a technological failure that affects the financial system through multiple channels,” — Sanjay Malhotra.