RBI Governor urges banks to harness AI, strengthen cybersecurity and customer service

Reserve Bank of India Governor Sanjay Malhotra called on banks to embrace artificial intelligence and other advanced technologies to improve their operations and customer service. Speaking at a meeting with executives from public and private sector banks in Mumbai, Malhotra stressed that technology adoption must be paired with robust cybersecurity measures and internal controls.

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Leverage advanced technologies, including artificial intelligence (AI), to improve operational efficiency, expand financial services and enhance customer experience.

"Leverage advanced technologies, including artificial intelligence (AI), to improve operational efficiency, expand financial services and enhance customer experience," Malhotra urged. He also emphasized the need for "strong cybersecurity and robust internal controls" to safeguard against fraud and misuse of customer data.

The governor highlighted the banking sector's broad-based growth and encouraged lenders to continue serving all economic segments with "renewed vigour and prudence." The meeting, attended by deputy governors and executive directors, also discussed several key initiatives. These included the Central KYC Records Registry, fraud detection systems like MuleHunter, the Central Bank Digital Currency (CBDC), and the Account Aggregator framework.

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strong cybersecurity and robust internal controls

Participants shared feedback on these initiatives and discussed various issues affecting the financial sector. The RBI stated that the meeting is part of its regular engagement with the banking industry to review developments, address emerging challenges, and strengthen collaboration on policy implementation, technology adoption, and financial inclusion.

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renewed vigour and prudence