RBI Advises Banks to Adopt AI, Blockchain Technologies

Reserve Bank of India's (RBI) Deputy Governor has recommended that Indian bank directors “adopt innovative technologies such as artificial intelligence (AI) and blockchain.”

During a conference held by the Reserve Bank of India (RBI) for the directors of Indian institutions, the Deputy Governor, Mahesh Kumar Jain, discussed risk strategies for sustainable growth and stability.

Jain emphasized the significance of effective corporate governance, governance structure, and processes for preparing for future risks.

Technological disruptions, changing customer expectations, and cybersecurity threats, among others, have introduced new technology, business, and operations risks for banks. His recommendation for addressing these challenges was to prioritize technology adoption.

“To prepare for the future,” Jain suggested that Indian institutions “adopt innovative technologies such as AI and blockchain,” focusing on digital transformation, improving customer experience, and investing in cybersecurity measures.

India's central bank launched its digital currency on November 1 and began testing its offline functionality in March. At the time, RBI executive director Ajay Kumar Choudhary announced India's plan to use its CBDC as a medium of exchange.

Pakistan, India's neighbor, has also announced an ambitious plan to train one million IT graduates in AI by 2027.

As previously reported, Pakistan's intended AI applications include, among others, weather forecasting, agriculture supply chain optimization, and health services transformation.