RBI calls on NBFCs to adopt AI and ML
The RBI is encouraging nonbank financial companies (NBFCs) to step up their tech game by using AI and machine learning to spot loan risks early.
Deputy Governor S C Murmu shared this at a recent summit, pointing out that NBFC credit now makes up about 16.7% of India's nominal GDP, up from last year, and accounts for about 27% of credit extended by scheduled commercial banks.
Murmu urges NBFCs to digitize responsibly
Murmu urged NBFCs to go digital with tools like paperless onboarding and algorithm-based credit checks, making it easier for more people, especially those usually left out, to access loans.
He also stressed the need for strong governance, diverse funding sources, and solid customer protection, reminding everyone that while tech is great, trust and responsibility matter just as much.