Public sector banks boost AI and cyber resilience under EASE₹ise 8.0 reforms

AI adoption expands across public sector banks

The Indian Banks’ Association’s EASE₹ise 8.0 Annual Report for FY 2026 says public sector banks (PSBs) are moving from pilots to full‑scale AI projects. Banks are drafting AI policies, setting road‑maps and already piloting generative‑AI use cases for credit underwriting, loan‑collection automation and integrated risk monitoring. By embedding AI into credit decisions, banks hope to speed approvals while tightening risk controls.

Cyber‑security and resilience get a boost

Under the report’s Risk and Resilience theme, PSBs are strengthening defences against financial, operational, technological and data‑related threats. The banks are modernising security platforms, expanding threat‑monitoring capabilities and tightening data‑governance and privacy frameworks. A key structural change is the creation of Resiliency Operations Centres (ROCs) that co‑locate security, network, IT and business‑continuity functions, allowing a coordinated response to any disruption.

Modernising legacy infrastructure

The Excellence theme calls for a systematic overhaul of ageing core‑banking systems. PSBs are adopting containerisation, modularisation and micro‑services architectures, which promise greater flexibility and faster rollout of new digital services. Centralised patch‑compliance dashboards are also being introduced to ensure technology‑risk management stays ahead of emerging vulnerabilities.

Inclusive, sustainable banking as a parallel goal

Beyond technology, the report stresses inclusive growth. Banks are digitising workflows for both customers and employees, improving accessibility for seniors and persons with disabilities, and tailoring products for youth, women, gig workers, farmers and MSMEs. ESG frameworks are being built to assess climate‑related risks, reflecting a broader commitment to sustainable finance.

A coordinated, government‑backed reform drive

The EASE₹ise programme is co‑ordinated by the IBA and monitored by the Ministry of Finance, providing a clear governance structure for the reforms. Sixteen action points across four themes—Risk and Resilience, Innovation, Socio‑economic Impact and Excellence—are backed by more than 50 reform initiatives and over 150 key performance indicators. The framework aims to future‑proof India’s public banking sector, ensuring stability, efficiency and a higher quality of service for millions of customers.

The report concludes that these combined efforts will not only tighten cyber‑defences and embed AI but also position public sector banks as engines of inclusive, sustainable growth in the country’s rapidly digitising economy.