A Global Outage, But India Remains Insulated
A massive Microsoft outage affected computer systems across the world, grounding flights and crippling banks, stock exchanges, payment systems, and emergency services. However, the Reserve Bank of India (RBI) has confirmed that the Indian financial sector remains largely unaffected by the global outage.
RBI’s Assessment
The RBI stated that critical systems of most banks are not in the cloud, and only a few banks are using the CrowdStrike tool. According to the RBI, only 10 banks and Non-Banking Financial Companies (NBFCs) had minor disruptions, which have either been resolved or are being resolved. The RBI has issued an advisory to its regulated entities for taking necessary steps to remain alert and ensure operational resilience and continuity.
Global Impact
The Microsoft outage had a significant impact on various sectors globally, including airlines, banks, stock exchanges, payment systems, and emergency services. Microsoft, in a tweet, said that “Multiple services are continuing to see improvements in availability as our mitigation actions progress.” Hours later, Microsoft announced that the underlying cause for the global outage had been fixed, but the residual impact of cybersecurity outages continued to affect some Office 365 apps and services.
Impact on Indian Brokerages
Some brokerage firms in India faced technical outages due to issues at global cybersecurity firm CrowdStrike. Among the affected brokerages were Nuvama Wealth Management, IIFL Securities, Edelweiss Mutual Fund, 5Paisa Capital, Angel Broking, and Motilal Oswal. However, India’s interbank trading platforms were operating smoothly, with banks reporting no problems in executing bond and foreign exchange transactions.
Advisory Issued
The RBI has issued an advisory to its regulated entities to take necessary steps to remain alert and ensure operational resilience and continuity. The regulator has also enquired with banks whether their customer-facing channels, such as branches, ATMs, mobile banking, and net banking, were operating well after the technical problem at Microsoft and its vendor American cyber security company CrowdStrike.
Microsoft Response
Microsoft, in a tweet, said that “Multiple services are continuing to see improvements in availability as our mitigation actions progress”. Hours later, Microsoft said that the underlying cause for the global outage has been fixed, but the residual impact of cybersecurity outages are continuing to affect some Office 365 apps and services.
RBI’s Vigilance
The RBI has been vigilant in monitoring the situation and has confirmed that their systems remain functional. The RBI’s prompt response and advisory to its regulated entities have helped to minimize the impact of the global outage on the Indian financial sector.
Conclusion
In conclusion, the Indian financial sector has demonstrated its resilience in the face of a global Microsoft outage. The RBI’s proactive measures and the robustness of the Indian financial system have ensured that the impact of the outage has been minimal. As the world becomes increasingly interconnected, it is essential for financial systems to be prepared for such outages and to have robust contingency plans in place.
FAQ’s
- Q: Was the Indian financial sector affected by the global Microsoft outage? A: No, the Indian financial sector remains insulated from the global Microsoft outage, according to the Reserve Bank of India (RBI).
- Q: What was the impact of the outage on Indian banks and NBFCs? A: Only 10 banks and NBFCs had minor disruptions, which have either been resolved or are being resolved.
- Q: Are critical systems of Indian banks in the cloud? A: No, critical systems of most banks are not in the cloud.
- Q: How many banks are using the CrowdStrike tool? A: Only a few banks are using the CrowdStrike tool.
- Q: What advisory has the RBI issued to its regulated entities? A: The RBI has issued an advisory to its regulated entities to take necessary steps to remain alert and ensure operational resilience and continuity.
- Q: Were customer-facing channels of banks affected by the outage? A: No, customer-facing channels such as branches, ATMs, mobile banking, and net banking were not affected by the outage.
- Q: How did Microsoft respond to the outage? A: Microsoft said that the underlying cause for the global outage has been fixed, but the residual impact of cybersecurity outages is continuing to affect some Office 365 apps and services.
