RBI Reports Minimal Impact on Banks, NBFCs from Microsoft Outage

The RBI confirms minor disruptions in 10 banks and NBFCs due to a Microsoft outage. The issues are either resolved or in the process of being fixed. The RBI has advised its entities to stay alert and ensure operational resilience.

The Reserve Bank of India has confirmed that only ten banks and non-banking financial companies (NBFCs) experienced minor disruptions due to a recent Microsoft outage. According to an official statement, the disruptions have been or are currently being addressed.

With a widespread outage in Microsoft services affecting IT systems globally, the RBI conducted a thorough assessment to gauge the impact on its regulated entities. 'Critical systems of most banks are not in the cloud and only a few banks utilize the CrowdStrike tool,' the central bank stated.

'Our assessment shows that only ten banks and NBFCs had minor disruptions, which have either been resolved or are being resolved,' reiterated the RBI. Overall, the central bank assures that the Indian financial sector remains largely unaffected by the global outage. The RBI has issued guidelines for its regulated entities to remain vigilant and ensure operational resilience.

Functional disruptions were reported across various sectors, including airlines, banking, and healthcare, due to the Microsoft outage. Microsoft is investigating issues affecting users' access to Microsoft 365 services. CrowdStrike, the cybersecurity firm linked to the problematic software update, confirmed the issue has been isolated and fixed. George Kurtz, President and CEO of CrowdStrike, assured that it was 'not a security incident or cyberattack.'

(With inputs from agencies.)