RBI Governor Sanjay Malhotra Outlines AI Roadmap for Banks

RBI Governor Sanjay Malhotra urged banks at the FIBAC 2026 conference to adopt AI for lending and fraud detection while warning of risks like bias and the 'black box' problem.

Malhotra stated that AI could transform credit delivery for borrowers without formal financial histories by utilizing alternative data like GST filings and utility payments to expand bankable pools.

The RBI identified seven key risks, including concentration and herding, and emphasized that banks must ensure human oversight and data privacy as they integrate AI into their core operations.