On May 9, 2025, in view of which specific situation did Finance Minister Nirmala Sitharaman instruct banks to remain fully alert and prepared?

Correct option is B

The correct answer is (b) Rising trend of phishing scams

Explanation:

• On May 9, 2025, Finance Minister Nirmala Sitharaman chaired a high-level meeting with heads of Public Sector Banks (PSBs).
• She issued instructions for banks to stay fully alert due to the rising trend of phishing scams and financial frauds.
• The Minister emphasized the need for robust cybersecurity measures to protect customer deposits and data.
• Banks were asked to increase customer awareness campaigns about digital safety and safe banking practices.
• The meeting also reviewed the progress of financial inclusion and credit flow to various sectors.

Information Booster:

• Phishing is a type of social engineering attack where attackers deceive people into revealing sensitive information like passwords or credit card numbers.
• The Government of India has launched the 'Chakshu' portal under Sanchar Saathi to report suspicious communications.

Additional Knowledge:
Geopolitical tensions (Option a)

• While geopolitics affects the economy, this specific warning to banks on May 9 was centered on cyber-fraud.

New banking tax (Option c)

• No new major banking tax implementation was the primary cause for this specific "alert and prepared" instruction in May 2025.

Digital-only banking (Option d)

• The RBI regulates digital banks, but the alert was specifically regarding the security threat of phishing.

So the correct answer is (b)