Archive · 11 Aug 2026
RBI Governor says AI alone can help limit AI frauds
The Reserve Bank of India is the big bank that looks after money in India.
Its leader, Sanjay Malhotra, gave a speech asking banks to use computers that can learn, called artificial intelligence, or AI for short.
He said people who steal money online move very fast, like a quick blink on a computer.
The old rules banks use cannot catch them fast enough.
But smart AI programs can watch millions of money movements and spot something strange right away.
He also said AI can help more people and small businesses get loans more easily.
India has super digital tools like UPI that help people pay instantly, which makes AI very useful there.
The big bank also made a group of experts to make sure AI is used fairly and safely.
Malhotra said the best banks will be the ones that understand AI well and take responsibility for how it works.
RBI Governor Sanjay Malhotra called for greater use of AI in banking to stay ahead of fraudsters at the FIBAC 2026 conference in Mumbai.
He said rules-based fraud engines are perpetually one step behind fraudsters, while AI and machine learning can identify anomalies in real time.
Malhotra said AI, if used intelligently, can save costs, democratise credit, and give access to formal credit for all sections of society.
An RBI committee on the responsible use of AI submitted its report last year, proposing a framework for responsible and ethical AI use.
He stressed that banks that win in the AI era will be those with a good understanding of what they employ and clear accountability for outcomes.
- Who
- Reserve Bank of India Governor Sanjay Malhotra
- What
- Called for increased use of artificial intelligence in banking to limit AI frauds, save costs, and expand access to credit
- When
- Tuesday, at the FIBAC 2026 conference
- Where
- Mumbai, India
- Why
- Because fraud moves at the speed of an API call and rules-based fraud engines lag behind fraudsters who adapt more frequently
- Speaker
- Sanjay Malhotra, RBI Governor
- Event
- FIBAC 2026 conference
- Location
- Mumbai
- Key quote
- "It is AI and AI alone that can help limit AI frauds"
- Fraud speed
- Speed of an API call
- RBI AI committee
- Submitted report last year proposing a framework for responsible AI use
- Digital infrastructure cited
- Aadhaar, UPI, DigiLocker
- Unsolved MSME credit market
- Estimated in tens of lakhs of crores of rupees