Finance ministry discusses AI with banks to improve loan collections
Business
The finance ministry is in discussions with banks about bringing artificial intelligence (AI) into the loan collection process.
The main aim is to help banks connect better with borrowers and encourage timely repayments, all while keeping customer safety and fraud prevention in mind.
RBI governor urges board-approved AI governance
This move ties into the EASE 9.0 reforms, which are pushing public sector banks to step up their tech game and get AI-ready.
While some banks are just starting out with chatbots and AI tools for collections, only a handful have gone all in so far.
The RBI governor also highlighted that AI could boost productivity, but stressed the need for board-approved AI governance policies with clear accountability for outcomes, not merely technology procurement.