RBI Governor Calls for Faster Adoption of AI in Banking
Sanjay Malhotra says artificial intelligence could transform India's banking sector on a scale comparable to earlier waves of liberalisation and digitalisation.
MUMBAI, Aug 12: Reserve Bank of India Governor Sanjay Malhotra has urged banks and financial institutions to accelerate their investment in artificial intelligence, highlighting the technology’s potential to reshape the country’s financial sector.
Malhotra said AI could bring a transformation to banking comparable to the impact of economic liberalisation in the 1990s and digitalisation in the following decades. He stressed that lenders need to invest in technology while ensuring that innovation does not compromise financial stability.
The growing use of AI is expected to influence several areas of banking, including customer service, fraud detection, risk assessment and operational efficiency.
The RBI governor’s remarks come as financial institutions across the country increasingly explore advanced technologies to improve services and manage large volumes of data.
Banks are also expected to strengthen their systems for managing emerging risks associated with artificial intelligence, particularly in areas involving data security, decision making and customer protection.
The central bank’s emphasis on technology signals the growing importance of AI in India’s financial ecosystem as lenders compete to modernise their operations and deliver faster digital services.
