Business

RBI Governor Asks Banks To Use AI To Avoid Risk Of Fraud

Highlighting the importance of advanced technologies such as artificial intelligence, machine learning, RBI Governor Shaktikanta Das urges banks and NBFCs to incorporate latest technologies to avoid the risk of financial fraud.

“Integrating advanced and emerging technologies such as AI, ML and big data analytics in organisational functioning can transform the way financial institutions operate. AI and ML can enhance predictive analytics and enable banks and NBFCs to identify potential risks and trends more accurately. These technologies can improve fraud detection by recognising unusual patterns and transactions in real time. Thus, they can protect the institutions and their customers from financial crimes and frauds,” Shaktikanta Das said on Thursday while addressing the Global Conference on Financial Resilience.

Also Read:Security Tightened Amid PM’s Official Visit To Srinagar On 10th International Yoga Day

“As the financial sector gets increasingly digitised, adoption of advanced technologies can significantly strengthen the ability of banks and NBFCs to withstand and respond to various risks. It has to be, however, ensured that these technologies are secure, reliable and aligned with the institution’s overall strategic goals,” Das Added.

The governor of the RBI added that although banks and NBFCs should always strive for commercial expansion, this should never come at the price of accepting unacceptably high risks.

He continued, “strong risk mitigants are critical to guaranteeing the long-term viability and robustness of a regulated entity as well as the overall financial system.”

Das also emphasised the need of ethics in the management of financial institutions, emphasising the need to follow rules and laws in letter and spirit, pursue sustainable business methods, and refrain from the heedless chase of profit margins.

Shibra Arshad

Recent Posts

US President Trump Threatens Additional Tariffs On Russian Oil, Expresses Frustration With Russian President Putin

US President Donald Trump has expressed his frustration with Russian President Vladimir Putin, warning that…

47 mins ago

PM Modi To Inaugurate Kashmir’s First Vande Bharat Express On April 19

PM Narendra Modi will inaugurate the Jammu-Srinagar Vande Bharat Express on April 19 from Katra,…

1 hour ago

Productivity Hacks That Will Change Your Life

Master productivity with time-blocking, digital detox, and focus hacks to boost efficiency and control your…

1 hour ago

AFSPA extended In Manipur, Parts Of Nagaland, Arunachal For Another 6 months

The Ministry of Home Affairs (MHA) on Sunday extended the Armed Forces (Special Powers) Act…

13 hours ago

‘Manthan 2025’ Conference Concludes With Insights On National Unity And Cultural Heritage

The two-day national conference ‘Manthan 2025’ concluded successfully at North Campus, Delhi University, bringing together…

14 hours ago

Nitish Kumar Admits ‘Mistakes’ Of Leaving NDA, Vows To Stay Loyal

Bihar Chief Minister Nitish Kumar on Sunday publicly admitted that he made “mistakes” by leaving…

16 hours ago