Impact Of Microsoft Global Outage On India's Banking System: RBI Said This
Early on Friday, companies in Australia running Microsoft Windows reported Blue Screens of Death (BSODs). This quickly spread globally, with disruptions reported from the UK, Netherlands, and the US, including Sky News going offline and major US airlines issuing a “global ground stop” on all flights.
The Reserve Bank of India (RBI) assessed the impact of the global outage on its regulated entities. According to the RBI, critical systems of most banks in India are not cloud-based, and only a few banks use the CrowdStrike tool linked to the issue. The RBI noted that only ten banks and NBFCs experienced minor disruptions, which have either been resolved or are in the process of being resolved. The RBI emphasized that the Indian financial sector, under its domain, remains largely insulated from the global outage. Additionally, the RBI has issued an advisory to its regulated entities, urging them to stay alert and ensure operational resilience and continuity.
“Large scale outage in Microsoft Services is impacting IT systems globally leading to disruptions in various sectors. The Reserve Bank has made an assessment of the impact of this outage on its Regulated Entities. Critical systems of most banks are not in cloud and further, 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. Overall, the Indian financial sector in the Reserve Bank’s domain remains insulated from the global outage. The Reserve Bank has issued an Advisory today to its Regulated Entities for taking necessary steps to remain alert and ensure operational resilience and continuity,” the RBI statement said.
Overview of the Outage:
Banks, airports, TV stations, hotels, and numerous businesses faced widespread IT outages after Windows machines displayed errors worldwide. The issue has been linked to a software update from cybersecurity giant Crowdstrike, affecting devices running Windows.
The IT outages have impacted various sectors. Airports and airlines experienced major disruptions in Australia, the UK, Europe, and the US, with airlines like United, Delta, and American Airlines halting flights.
Multiple banks in Australia reported outages, causing significant inconvenience and operational challenges.
Media outlets were not spared, as TV stations like Sky News went offline, disrupting broadcast schedules and information dissemination.
Countless businesses worldwide, including hotels and telecommunications providers, experienced disruptions, affecting their services and operations.
Public services were also impacted, with 911 emergency services in several US states and Israel’s post offices and hospitals experiencing outages.
The incident could result in losses amounting to millions for affected organisations, which had to halt operations or stop business activities. The ongoing impacts and downtime continue to incur significant costs for businesses and public services worldwide.
