India's Central Bank Urges Lenders to Invest in AI, Warns on Cyber and Data Risks

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โดย Money & Banking·IN·Read original
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The Reserve Bank of India is calling on commercial banks to accelerate investment in artificial intelligence and infrastructure, while upgrading employee skills. But it warns they must thoroughly understand and manage AI risks, especially cybersecurity and personal data protection. Governor Sanjay Malhotra said at an event in Mumbai that widespread AI adoption brings risks ranging from biased or opaque decision-making to data privacy and cyber threats. He also cautioned about the risk of relying on just a few models or technology providers, which could expose the banking system to simultaneous failures. Malhotra noted that banks that win in the AI era are not necessarily the fastest or the heaviest adopters, but those that deploy it with deep understanding. The remarks reflect a key challenge for India's financial sector as it rapidly adopts AI to boost efficiency and cut costs, while also creating new vulnerabilities and empowering cyber attackers. Earlier, Finance Minister Nirmala Sitharaman also warned of unprecedented risks from AI and urged financial institutions to take preventive measures. Malhotra added that geopolitical and trade uncertainties are another major risk, but Indian banks remain resilient enough to cope, thanks to strong credit growth, low bad loans, ample liquidity, and healthy profitability. He assessed that the Indian economy will overcome challenges and emerge stronger, supported by resilient growth, controlled inflation, and high foreign exchange reserves.

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