The Reserve Bank has chosen global consulting companies McKinsey and Company India LLP and Accenture Solutions Pvt Ltd India to develop systems for its supervisory tasks that use artificial intelligence and machine learning.
The RBI intends to deploy sophisticated analytics, artificial intelligence, and machine learning to analyze its massive database and better regulatory oversight of banks and NBFCs. The central bank intends to engage outside specialists for this purpose.
In September last year, the RBI solicited expressions of interest for consultants who would generate supervisory inputs using advanced analytics, artificial intelligence, and machine learning.
Following the first release, seven applications were chosen to participate in the request for proposal process.
According to the Reserve Bank document, the contract was given to McKinsey and Company India LLP and Accenture Solutions Private Limited India for around Rs 91 crore.
While the RBI is currently utilizing AI and Machine Learning in supervisory operations, it plans to upscale it to reap the benefits of sophisticated analytics.
According to the EoI issued in September, the Department of Supervision has already been developing and using linear and a few machine-learning models for supervisory tests. It will now investigate the data to uncover characteristics that might be used to develop new and enhanced supervisory inputs.
The RBI has supervisory authority over banks, urban cooperative banks, NBFCs, payment banks, small finance banks, local area banks, credit information companies, and a subset of all Indian financial institutions.
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