RBI urges banks to use AI, strengthen cybersecurity

Mumbai, July 14 (IANS) The Reserve Bank of India (RBI) on Tuesday held its half-yearly meetings with the Managing Directors and Chief Executive Officers of Public Sector Banks and select Private Sector Banks in Mumbai, with Governor Sanjay Malhotra calling on lenders to harness artificial intelligence (AI), strengthen cybersecurity and maintain a strong customer-centric approach. 

The meetings were chaired by the RBI Governor and attended by Deputy Governors Swaminathan J., Dr. Poonam Gupta, S. C. Murmu and Rohit Jain, along with Executive Directors responsible for supervision, regulation, enforcement, consumer education and protection, and financial inclusion.

In his opening remarks, the governor noted that the Indian banking sector has witnessed broad-based growth and urged banks to continue supporting all segments of the economy with renewed vigour while maintaining prudence.

Highlighting the growing role of technology in banking, he encouraged lenders to leverage advanced technologies, including AI, to expand their reach, improve operational efficiency, reduce costs and enhance customer experience.

At the same time, he emphasised the importance of robust cybersecurity frameworks, strong internal controls and adequate safeguards against fraud and misuse of customer data.

The governor also underscored the need for banks to foster a culture of excellence in customer service by placing customers at the centre of their operations.

During the meetings, the RBI and bank executives discussed several key initiatives and issues affecting the financial sector, including the Central KYC Records Registry (CKYCR), early detection of Fake Indian Currency Notes (FICN), adoption and wider use of the MuleHunter initiative, the Central Bank Digital Currency (CBDC), Unified Lending Interface (ULI), the Account Aggregator framework, FX Retail and the RBI Retail Direct platform.

Participants shared their feedback on these initiatives and exchanged views on a range of other issues impacting the banking and financial sector, reaffirming their commitment to strengthening the resilience, efficiency and inclusiveness of India's banking system.

--IANS

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