14 hrs ago

RBI Deputy Governor Urges AI Governance Before Financial Services Scale

RBI Deputy Governor Jain said banks should set rules for artificial intelligence before using it on a much larger scale.

He said technology helps banks, but it can also create serious risks.

A computer outage or cyberattack could stop people from using important financial services.

Data breaches can lead to identity theft, fraud and reduced trust.

Banks should update systems, protect data and prepare responses to incidents.

They should also look for unusual behavior and patterns, not just suspicious transactions.

Jain said AI can help attackers, but it can also help defend banks.

He expects banks to use new foreign-deposit liquidity in the coming months, while managing India’s reserves carefully.

Key facts

Speaker: RBI Deputy Governor Jain
Main message: AI governance should precede scaling in financial services.
Cybersecurity approach: Banks should combine real-time transaction monitoring, behavioral analytics, device and identity intelligence, domain and network analysis, and information sharing.
FCNR (B) liquidity: Jain expects banks to deploy the liquidity over the coming months, depending on their pipelines, proposals and liquidity outlooks.
Reserve priorities: Foreign-exchange reserves should be managed in the order of safety, liquidity and return.
Foreign-exchange reserves: India’s reserves stood at $780.78 billion as of September 11.
Technology risk: Technology risk extends beyond IT because it is embedded in functions including customer onboarding and fraud detection.

financialexpress.com · 14 hrs ago