Nepal Rastra Bank issued an urgent cybersecurity directive on Thursday after detecting a 400 percent increase in cyberattacks targeting Nepali financial institutions over the past six months. The directive requires all banks and financial institutions to implement enhanced security protocols within 90 days.

According to the central bank's IT security division, sophisticated phishing campaigns and ransomware attacks have targeted at least 12 commercial banks. Two smaller development banks experienced temporary service disruptions due to coordinated denial-of-service attacks last month.

The directive mandates multi-factor authentication for all digital banking services, real-time transaction monitoring systems, and quarterly security audits by certified cybersecurity firms. Banks that fail to comply face penalties of up to 50 million rupees.

Cybersecurity experts say Nepal's rapid digital banking adoption has outpaced security investments. The Nepal Bankers Association has committed to a joint investment of 5 billion rupees in cybersecurity infrastructure over the next two years.