RBI Adopts Global Incident Reporting Framework To Increase Resilience Against Cyberattacks

The Reserve Bank of India (RBI) has adopted the Format for Incident Reporting Exchange (FIRE), a global framework introduced by the Financial Stability Board (FSB) to streamline the reporting of cyber and operational incidents in the financial system.

Amid the increasing prevalence of financial institutions using digital channels, there has been a recurring risk of cyberattacks and system crashes, which not only disrupt workflow but also create panic and a sense of distrust among the public regarding the functioning of financial systems.

In order to react to such disruptions at a moment's notice, supervisory authorities need timely and coordinated information. The FIRE framework seeks to address this need by laying down a standard format for reporting incidents.

What FIRE Covers

FIRE framework offers a template for financial institutions to report a broad spectrum of disruptions, such as cyber attacks, technology breakdowns, and third-party service provider issues. It is intended for use not only by banks but also by non-banking financial institutions (NBFCs), clearing corporations, insurance companies, mutual funds, and other financial market intermediaries.

The model is also flexible. Although it sets out generic information elements that have to be reported, it enables jurisdictions to apply the model to suit local needs and supervisory structures.

Role Of The Data Point Model

To complement FIRE's adoption, the FSB has also published a taxonomy package based on a Data Point Model (DPM). The DPM has been devised to organise reporting items into a structured, hierarchical structure. It oversees the capture and processing of complicated data.

The DPM facilitates various reports that can be generated for regulatory or legal requirements. It enables financial institutions to communicate information in a business-friendly and non-technical way, which can enhance the efficiency of data gathering and error-free reporting.

Relevance For India's Financial Sector

As per the June 2025 Financial Stability Report issued by the RBI, cyber attacks are now viewed as a significant risk to financial stability, as there is growing digital interconnectedness among financial institutions. The report adds that fractured reporting frameworks between jurisdictions have impaired coordination of responses in a timely manner.

Through the adoption of the FIRE framework, the RBI hopes to enhance the consistency and quality of incident reporting across India's financial system. It also enables Indian regulators to keep their practices in line with the rest of the world.

Broader International Context

FIRE is part of an international initiative to enhance cyber resilience in the financial system. The FSB has called on its member states to use this structure to reduce repetition and improve collaboration between national authorities. The framework also facilitates quicker data sharing between countries if cross-border incidents occur.

The adoption of FIRE by Indian regulators adds to other measures recently taken to improve operational resilience, such as the introduction of system audit reforms, steps to combat digital fraud, and the RBI’s updated guidelines on liquidity risk management.