Unchecked use of AI in banking poses risk: RBI governor Shaktikanta Das

RBI governor Shaktikanta Das has warned of risks associated with excessive reliance on AI and machine learning in banking, highlighting potential market concentration, systemic instability, and increased cyber vulnerabilities. He urged banks to implement adequate risk mitigation measures. Das also proposed expanding India’s real-time gross settlement system to include major trade currencies like the dollar, euro, and pound.