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.
- Use AI to analyse large volumes of data for detecting spikes in:
- 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
