Archive · 10 Sep 2026
RBI Deputy Governor Warns Common Tech Providers Pose Systemic Risks
Many banks and financial companies use the same cloud and artificial intelligence providers.
If one of these shared providers has a serious problem, many institutions could be affected at once.
RBI Deputy Governor Rohit Jain said technology can make problems move faster and spread farther.
He described speed, concentration and opacity as three important risks.
Automated systems must be watched so mistakes can be found and stopped quickly.
Using an AI model does not remove a financial institution’s responsibility for its decisions.
Regulators should set rules based on the results and risks of technology rather than dictating every technical choice.
Jain also said authorities should prepare now for future threats, including quantum computing.
RBI Deputy Governor Rohit Jain warned that reliance on a small number of cloud, technology and AI providers could spread disruptions across multiple financial institutions.
Jain identified speed, concentration and opacity as technology-amplified risks in finance.
He said automated systems must support early detection, containment and intervention before small errors expand.
Jain stressed that institutions remain accountable for decisions made with outsourced technology and advanced AI models.
He urged regulators to focus on outcomes and accountability while preparing for emerging risks such as quantum computing.
- Who
- RBI Deputy Governor Rohit Jain and financial institutions using shared technology providers.
- What
- Jain warned that dependence on common cloud, technology and AI providers could create systemic financial risk.
- When
- Wednesday, at the Global Fintech Fest 2026.
- Where
- At the Global Fintech Fest 2026; the article does not specify a city.
- Why
- Shared infrastructure, overlapping datasets and automated systems could allow disruptions or errors to spread rapidly across institutions.
- Main concern
- A disruption at one common technology provider could affect multiple financial institutions.
- Key risks
- Speed, concentration and opacity.
- Accountability
- Institutions cannot transfer responsibility for financial consequences to technology or AI providers.
- Regulatory approach
- Focus on outcomes and accountability rather than prescribing specific technologies.
- Future threat
- Quantum computing could threaten existing cryptographic systems.
- Supervisory tools
- The RBI uses or is developing DAKSH, PRAVAAH and the Digital Payments Intelligence Platform.