A recent report from the Reserve Bank of India (RBI) reveals that the average cost of a data breach in India surged by 28% from 2020 to 2023, surpassing $2 million. The RBI’s report on currency and finance, released on Monday, does not detail the components of these costs or the entities that bear them.

According to the report, the automotive sector is the most susceptible to cyber-attacks, while the banking and financial services industry, due to stringent regulations, is relatively shielded from such breaches. Phishing attacks are identified as the most prevalent, making up 22% of incidents, followed by stolen or compromised credentials at 16%.

This increase in cyber-attacks aligns with the rapid expansion of India’s digital economy, which currently represents around 10% of the nation’s GDP and is projected to reach 20% by 2026. The report highlights that India is a global leader in real-time payments, holding a 48.5% share of the international market.

Since the 2017-2018 financial year, domestic digital payments have experienced a compound annual growth rate (CAGR) of 50% in volume and 10% in value.