2 hrs ago
SBI Chairman Calls for Know Your Agent Framework
Banks are starting to use computer programs that can make decisions and take actions for customers.
CS Setty said banks should create rules for these AI agents.
The rules should explain who an agent is, how it proves its identity and what it is allowed to do.
Customers should give permission, and banks should set limits and keep records.
AI could help detect fraud, check loans and answer customer questions.
But an autonomous mistake could spread quickly through several banking systems.
Setty said people should continue supervising difficult or risky financial decisions.
He also said India needs affordable computers and AI models.
Voice banking in Indian languages could help more people use financial services.
State Bank of India Chairman CS Setty called for banks to develop a “know your agent” framework as AI begins participating directly in financial transactions.
The framework should cover identity, authentication, customer consent, transaction limits, audit trails and the ability to revoke an agent’s access.
Setty said AI agents could support fraud detection, KYC, anti-money-laundering checks, loan appraisal, underwriting, reconciliation and customer service.
He warned that autonomous errors could rapidly affect customers, counterparties and institutions across multiple systems.
Setty said human oversight would remain necessary for complex decisions, while affordable AI models, computing infrastructure and Indian-language voice banking could support wider adoption.
- Who
- State Bank of India Chairman CS Setty and banks developing AI-based financial services.
- What
- Setty called for a “know your agent” framework to govern AI agents participating in financial transactions.
- Where
- At the Global Fintech Fest 2026; the discussion focused on scaling AI in India.
- When
- Thursday, at the Global Fintech Fest 2026.
- Why
- To manage the risks of autonomous AI while enabling its use in banking, financial inclusion and customer services.
Key facts
- Proposed framework
- Identity, authentication, customer consent, transaction limits, audit trails and revocation.
- Potential AI uses
- Fraud detection, KYC, anti-money-laundering monitoring, loan appraisal, underwriting and reconciliation.
- Customer applications
- Customer service, complaint management and customer lifecycle management.
- Trust principles
- Accuracy, accountability and access without asymmetry.
- Human oversight
- Setty said it would remain necessary for complex and high-risk financial decisions.
- India’s infrastructure challenge
- Affordable AI models and computing infrastructure are needed for large-scale deployment.
- Financial inclusion use case
- Voice-based conversational banking, particularly in Indian languages.
Quotes
CS Setty
Chairman of the State Bank of India
“Banks have spent decades building robust processes about know your customer. As agents begin to participate in financial transactions, we will increasingly need to think about know your agent”
financialexpress.com
“When a system can act autonomously, an error can potentially trigger a sequence of actions across multiple systems and affect customers, counterparties, and institutions at machine speed”
financialexpress.com
Sources
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