RBI's Rohit Jain warns banks on cloud and AI risks
Business
The Reserve Bank of India (RBI) just gave banks a heads-up about depending too much on shared tech like cloud computing and AI.
At the Global Fintech Fest in Mumbai, Deputy Governor Rohit Jain explained that if one major provider goes down, it could hit a bunch of banks at once.
He pointed out that while new tech boosts efficiency, it also connects banks more tightly, so problems can spread faster.
RBI warns banks cannot outsource consequences
Jain highlighted three big risks: speed, concentration, and opacity.
He warned that "An institution may outsource the computation, but it cannot outsource the consequence," meaning banks still have to deal with any fallout themselves.