RBI Governor Malhotra says AI could transform banking like digitization
RBI Governor Malhotra thinks artificial intelligence (AI) could shake up banking as much as digitization did in the 2010s.
At a Mumbai conference, he said AI can help more people access financial services and make systems like the unified lending interface (ULI) smarter.
He encouraged banks to invest in new tech but reminded them to keep strong checks in place.
RBI plans AI governance, warns banks
The RBI plans to establish a more approved AI governance policy with clear accountability and continue to provide a sandbox as a safe space for testing innovative use cases for banks.
Malhotra pointed out that AI might cut bank costs by nearly half and make getting credit easier through better data.
Still, he warned banks not to lean too much on outside tech vendors: Malhotra said, "For a bank's decision, the ultimate responsibility has to lie with the bank, and not with the vendor or with the algorithm."