RBI Governor urges banks to harness AI, strengthen cybersecurity and customer service
New Delhi, July 14
Reserve Bank of India Governor Sanjay Malhotra on Tuesday asked banks to leverage advanced technologies, including artificial intelligence, to improve operational efficiency, expand financial services and enhance customer experience, while emphasising the need for strong cybersecurity and robust internal controls.
The remarks came during the RBI's half-yearly meeting with the Managing Directors and Chief Executive Officers of Public Sector Banks and select Private Sector Banks held in Mumbai.
The meeting was chaired by the Governor and attended by Deputy Governors Swaminathan J., Poonam Gupta, S. C. Murmu and Rohit Jain, along with Executive Directors overseeing supervision, regulation, enforcement, consumer education and protection, and financial inclusion.
In his opening remarks, the Governor noted that India's banking sector has witnessed broad-based growth and urged lenders to continue meeting the financing needs of all segments of the economy with "renewed vigour and prudence."
Highlighting the growing role of technology in banking, he encouraged banks to adopt AI and other advanced digital tools to improve productivity, lower operational costs and widen access to financial services. At the same time, he cautioned that technological adoption must be accompanied by robust cybersecurity measures, effective internal controls and safeguards against fraud and misuse of customer data.
The Governor also underscored the importance of customer-centric banking, urging lenders to cultivate a culture of excellence in customer service by placing customers at the heart of their operations.
Apart from technology and customer service, the discussions covered several key initiatives aimed at strengthening the financial ecosystem. These included the Central KYC Records Registry (CKYCR), early detection of Fake Indian Currency Notes (FICN), adoption and wider use of the MuleHunter fraud detection system, the Central Bank Digital Currency (CBDC), the Unified Lending Interface (ULI), the Account Aggregator framework, FX Retail and the RBI Retail Direct platform.
According to the RBI, participants shared feedback on these initiatives and discussed a range of issues affecting the financial sector.
The meeting forms part of the central bank's regular engagement with the banking industry to review sectoral developments, discuss emerging challenges and strengthen collaboration on policy implementation, technology adoption and financial inclusion.
— ANI
Reader Comments
Cybersecurity is the key. With so many digital transactions happening, one data breach can ruin lives. I hope banks invest in real protection, not just tick-mark compliance.
Finally, some serious talk about MuleHunter and FICN detection. Fake currency is a real threat to our economy. Also glad CBDC is being pushed - it's the future.
AI in banking sounds promising, but what about the 40% of Indians still in rural areas with limited internet? Digital divide is real. Hope banks don't forget physical branches.
Customer first - finally someone in top brass said it! 😊 My bank's chatbot is useless, I need human touch when dealing with my life savings. Hope they train staff properly.
Good initiative by Governor. But I hope banks don't just use AI to cut jobs - they should use it to reduce our paperwork! Still filling forms manually for simple tasks in 2024?
ULI and Account Aggregator framework are game changers. Finally, we can share financial data securely without those painful paperwork trails. Just need better awareness in Tier-2 cities.
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