AI can boost banking, but risks need careful oversight: RBI

Business Oct 08, 2025

At the Global Fintech Fest this week, RBI Deputy Governor T Rabi Sankar spotlighted both the promise and the pitfalls of AI in finance.
While AI can boost efficiency and make banking more accessible, he warned that without careful oversight, it could trigger market swings or lead to unfair practices.

Sankar laid out 5 pillars for safe AI in finance

Sankar called for a "safety by design" approach—basically, building strong guardrails into AI from the start to prevent mistakes that could shake up markets or hurt trust.
He laid out five pillars for safe AI in finance: trust, ethics, training, using tech for good, and working together.
RBI's already using AI to catch fraud, but Sankar made it clear: responsible AI is the only way forward for a stable, innovative future.