Deputy Governor of the Reserve Bank of India (RBI), Mahesh Kumar Jain, has emphasized the importance of Indian banks adopting innovative technologies such as artificial intelligence (AI) and blockchain to ensure sustainable growth and stability. Speaking at an RBI conference for bank directors, Jain discussed strategies to address risks associated with evolving customer expectations, technological disruptions, and cybersecurity threats.
Jain highlighted the significance of effective corporate governance and robust structures and processes in preparing for future risks. He emphasized that banks need to focus on technology adoption to overcome the challenges posed by these risks. Alongside digital transformation, enhancing customer experience, and investing in cybersecurity measures, Jain specifically recommended the adoption of AI and blockchain technologies by Indian banks.
The Reserve Bank of India had recently launched its central bank digital currency (CBDC) on November 1, with offline functionality testing commencing in March. The intention behind the CBDC is to use it as a medium of exchange. Pakistan, India’s neighboring country, has also expressed its ambitions in utilizing AI for various purposes, including weather prediction, agriculture supply chain optimization, and transforming healthcare services. Furthermore, Pakistan has set a target of training 1 million IT graduates in AI by 2027.
With Deputy Governor Mahesh Kumar Jain’s recommendations, Indian banks are being encouraged to embrace technological advancements to navigate the changing landscape of the financial industry. By adopting AI and blockchain technologies, banks can enhance their operational efficiency, improve customer experiences, and strengthen their cybersecurity measures, ultimately paving the way for sustainable growth and stability in the Indian banking sector.
By Impact Lab