RBI chief Sanjay Malhotra tells banks to own AI decisions
RBI chief Sanjay Malhotra is urging banks to stay alert about how they use artificial intelligence.
At the FIBAC 2026 Conference, he made it clear that banks can't just blame algorithms for bad calls: responsibility still lies with people.
As he put it, "The responsibility for a bank's decisions rests with the bank, not with its algorithm."
RBI urges human oversight for AI
Malhotra stressed that humans need to keep an eye on AI systems so they can step in, explain choices, or override them if things go wrong.
He wants banks to set clear rules for using AI and track where it's used, especially for important stuff like loans and fraud checks.
He also recommends putting new AI tools through tough tests before and after launch so risks don't slip through.
The RBI plans to keep encouraging smart innovation but wants safety and accountability front and center.