Archive · 11 Aug 2026
India must shape AI journey, not be shaped by default
The head of India's central bank, called the Reserve Bank of India, gave a big speech to bankers.
His name is Sanjay Malhotra.
He said India should decide how to use artificial intelligence, which is when computers do smart tasks that usually need human thinking.
He warned that if India does not make its own choices, the technology will make the choices for us.
He said India is lucky because it already has great digital tools like UPI, which lets people pay using phones, and Aadhaar, a digital identity card.
These tools make India a great place to build smart banking services.
He also said AI will change how banks check risks and help customers.
Malhotra shared news that banks are on track to follow new safety rules called Basel III starting next year.
He also told everyone that the central bank has made rules simpler and processes applications faster.
His main message was to guide AI wisely so it helps everyone.
RBI Governor Sanjay Malhotra said India must shape its artificial intelligence journey rather than let AI shape the financial sector by default.
Speaking at the FIBAC 2026 conference on Tuesday, he called for a complete transformation in how institutions evaluate risk, serve customers, price capital, and organize operations.
He cited Aadhaar, UPI, DigiLocker, and ONDC as advanced public digital infrastructure giving India a unique vantage point to leverage AI.
Malhotra said banks remain on track to implement applicable Basel III guidelines from the start of the next financial year under the provided glide path.
He reported the RBI automated over 203 application types, delivered 99.9 per cent of services within prescribed timelines, and took measures to expand bank credit.
- Who
- Reserve Bank of India Governor Sanjay Malhotra, speaking at the FIBAC 2026 conference
- What
- Urged India to proactively shape its artificial intelligence journey in banking and finance rather than let AI shape the sector by default
- When
- Tuesday, at the FIBAC 2026 conference (article datelined August 11, 2026)
- Where
- New Delhi, India (article dateline)
- Why
- To ensure AI adoption transforms banking deliberately and safely, leveraging India's advanced public digital infrastructure
- Speaker
- Sanjay Malhotra, Governor of the Reserve Bank of India
- Event
- FIBAC 2026 conference
- Date
- Tuesday, August 11, 2026
- Public digital infrastructure cited
- Aadhaar, UPI, DigiLocker, ONDC
- Basel III implementation
- On track to begin from the next financial year under the glide path
- Application types automated by RBI
- Over 203
- Services delivered on time
- 99.9 per cent within prescribed timelines
- Frameworks finalized
- Credit risk capital, expected credit loss, project finance, related party transactions, dividend policy