RBI's Malhotra warns conflicts, trade and cyberattacks threaten India economy
RBI Governor Sanjay Malhotra just called out some big risks for India's economy: think global conflicts, trade issues, and cyberattacks.
At a Mumbai conference, he pointed out that our interconnected world means problems abroad can hit us at home.
Still, he reminded everyone how India bounced back from tough times like COVID-19 and the Russia-Ukraine war, and said measures to diversify energy and other critical supply chains, reduce energy intensity, expand ethanol blending and electric mobility, and deepen trade through free trade agreements would strengthen resilience.
RBI may issue banking AI rules
Malhotra also talked about AI making waves in banking, helping with things like fraud detection.
But he's clear: banks need strong rules so tech doesn't bring new problems like data leaks or bias.
The RBI is brainstorming whether it should bring in comprehensive guidelines on use of AI; and if yes, what all should the norms cover.
As Malhotra put it, innovation and safety should be treated as complementary rather than opposing objectives, with the RBI favoring a principles-based and proportionate regulatory approach as banks navigate the rapidly evolving technology.