RBI Governor Advocates AI Use

Context:

RBI Governor Sanjay Malhotra urged central bank-regulated entities to leverage artificial intelligence (AI) for internal controls to address consumer complaints related to misselling and aggressive practices.

Complaint Data

• 95 commercial banks in India received over 10 million customer complaints in FY 2023-2024.
• Malhotra warned this number could grow with an expanding customer base and product suite if proactive steps are not taken.

Suggested AI Applications

• Data Analysis & Early Detection
  • Use AI to analyse large volumes of data for detecting spikes in:
    • ATM failures
    • Erroneous charges
  • Enable preemptive alerts for such issues.
• Customer Interaction Tools
  • Implement AI-driven chatbots and voice recognition to overcome language barriers in India’s linguistically diverse population.

Human Capital Investment

• Malhotra emphasized the need for financial institutions to invest in human capital to:
  • Improve customer service
  • Strengthen grievance redressal mechanisms