Archive · 19 Aug 2026
RBI Deputy Governor Urges Banks to Stress-Test AI Systems
A senior Indian banking official said banks should be careful when using artificial intelligence.
He wants banks to test AI systems before they start using them and to keep testing them later.
People, not machines, should be responsible for important automated decisions.
Customers should know when they are dealing with a computer system.
If a computer rejects a loan or lowers a credit limit, a qualified person should be able to review the decision.
Murmu also said banks should keep a list of every AI system they use, including systems supplied by vendors.
He warned that saving money is not enough if customers do not receive better service or wider access to credit.
Shared technology and data could cause problems across many banks at once.
He pointed to MuleHunter.ai and the Digital Payments Intelligence Platform as examples of collective responses to such risks.
Reserve Bank of India Deputy Governor Shirish Chandra Murmu urged banks to test AI systems for adverse outcomes before deployment and regularly afterward.
Murmu said banks must assign human accountability for automated decisions and maintain inventories of all AI systems, including vendor-embedded tools.
Customers should be told when they are interacting with automation and given access to authorized human reviews for significant decisions.
He warned that focusing only on AI-driven cost savings could preserve existing weaknesses instead of improving customer service and financial access.
Murmu highlighted systemic risks from shared data, models, vendors and infrastructure, citing MuleHunter.ai and the Digital Payments Intelligence Platform as responses.
- Who
- Reserve Bank of India Deputy Governor Shirish Chandra Murmu, with comments also referencing Governor Sanjay Malhotra.
- What
- Murmu urged banks to stress-test AI systems, assign human accountability, disclose automation to customers and monitor shared systemic risks.
- When
- Wednesday; the articles do not provide a specific date.
- Where
- The fourth CNBC-TV18 Banking Transformation Summit in Mumbai.
- Why
- To help banks contain cyber fraud and emerging risks while protecting consumers, preserving market integrity and avoiding unnecessary credit denials.
- Speaker
- Shirish Chandra Murmu, Deputy Governor of the Reserve Bank of India
- Testing requirement
- Banks should test AI systems adversely before deployment and at regular intervals afterward.
- Accountability
- A person must own decisions made with the help of a machine.
- Customer safeguards
- Customers should be informed about automated interactions and have access to authorized human review for material decisions.
- Credit trend
- The share of new businesses entering the formal credit system fell to 42% in 2025-26 from 52% in 2022-23.
- Commercial credit
- Outstanding commercial credit grew 14%, according to Murmu's cited credit bureau data.
- Collective-risk responses
- Murmu cited MuleHunter.ai and the Digital Payments Intelligence Platform as central-bank responses to shared risks.