A large-scale outage in Microsoft services has caused significant disruptions globally, affecting various sectors, including banking, airlines, media, and businesses. The Reserve Bank of India (RBI) reported that the outage has impacted ten banks and Non-Banking Financial Companies (NBFCs) in India, resulting in minor disruptions.
Impact on Indian Banks and NBFCs
RBI’s Assessment
The RBI has assessed the impact of the Microsoft outage on its regulated entities. According to the RBI:
- Critical systems of most banks are not cloud-based, reducing the overall impact.
- Only a few banks are using the CrowdStrike tool, which was affected by the outage.
- Minor disruptions were reported in ten banks and NBFCs, which have been or are being resolved.
Statement from the RBI
“Critical systems of most banks are not in the cloud and furthermore, only a few banks are using the CrowdStrike tool. Our assessment shows that only 10 banks and NBFCs had minor disruptions which have either been resolved or are being resolved,” the RBI stated.
Global Impact of the Outage
The outage disrupted Microsoft 365 apps and services, causing significant issues worldwide:
- Flights: Operations were disrupted, leading to delays and cancellations.
- Banks: Various banking operations were affected, although critical systems remained largely unaffected.
- Media Outlets: Several media organizations faced operational challenges.
- Businesses: Companies relying on Microsoft services experienced significant disruptions in their IT systems.
RBI’s Response and Advisory
In response to the outage, the RBI has:
- Issued an advisory: Directed its regulated entities to take necessary steps to remain alert and ensure operational resilience and continuity.
- Ensured operational continuity: Despite the global outage, the Indian financial sector under the RBI’s domain remains largely insulated.
Conclusion
The Microsoft outage caused minor disruptions in ten banks and NBFCs in India, but the overall impact on the Indian financial sector has been minimal. The RBI’s proactive assessment and advisory have helped mitigate potential risks, ensuring continued operational resilience. The situation underscores the importance of robust IT infrastructure and contingency planning in maintaining the stability of financial systems.
