RBI Governor Sanjay Malhotra has warned that the next major financial crisis may not start inside a bank. It could begin with a cyberattack, a technology failure or a geopolitical event. Speaking at the Kautilya Economic Conclave in New Delhi on October 3, Malhotra said sophisticated AI tools have made cyber risk the most immediate concern. A vulnerability in one country can now travel across borders through interconnected financial systems. ‘Today’s resilience may not necessarily imply tomorrow’s immunity,’ he said. Regulators, he argued, should not try to eliminate every risk, but must ensure the financial system can absorb shocks without spreading them to the wider economy. Malhotra said India is navigating global uncertainty from a position of strength, with strong macro fundamentals and healthy bank and NBFC balance sheets. But he listed new risks: AI-driven market valuations, high global debt, private credit and AI-compounded cyber threats. His priorities for resilience include diversifying energy import sources, expanding petroleum reserves, strengthening manufacturing, widening market access through trade agreements, and promoting settlement of trade in local currencies. He also flagged the war in West Asia, saying it has hit supply chains and added to inflation pressure.