RBI Governor Sanjay Malhotra urges banks to understand AI risks
Business
RBI Governor Sanjay Malhotra wants banks to really understand what AI means for them, not just jump on the bandwagon.
At the FIBAC 2026 conference, he said banking with AI needs a "total change in mindset" and warned that rushing in without knowing the risks or responsibilities could backfire.
India's digital infrastructure gives AI advantage
Malhotra pointed out that India's public digital tools, like Aadhaar, UPI, DigiLocker, and ONDC, give us a big advantage for using AI smartly.
He encouraged banks to lead this shift, not just follow trends.
Plus, new regulations, like Basel III, are coming next year, so banks will need to step up their game on things like risk management and accountability.