Deputy Governor Mahesh Kumar Jain of the Reserve Bank of India (RBI) has urged Indian bank directors to “embrace innovative technologies such as AI and blockchain” to ensure sustainable growth and stability.
A senior government official representing India’s central bank has recommended that all banks adopt artificial intelligence and blockchain technology to secure long-term growth and stability.
During a conference organized by the RBI for Indian bank directors, Deputy Governor Mahesh Kumar Jain discussed strategies to mitigate risks associated with sustainable growth and stability.
Jain emphasized the significance of effective corporate governance, governance structures, and processes in preparing for future risks. Technological disruptions, changing customer expectations, and cybersecurity threats have introduced new sets of risks across technology, business, and operations for banks. Jain advised addressing these challenges through the adoption of technology.
To prepare for the future, Jain suggested that Indian banks should “adopt innovative technologies such as AI and blockchain,” while also focusing on digital transformation, enhancing customer experience, and investing in cybersecurity measures.
India’s central bank digital currency (CBDC) was launched on November 1 and underwent offline functionality testing in March. At the time, Ajay Kumar Choudhary, Executive Director of the RBI, expressed India’s intention to use the CBDC as a medium of exchange.
The RBI’s call for banks to embrace AI and blockchain reflects the growing recognition of these technologies’ potential to transform the banking sector and address emerging challenges. By leveraging these innovations, Indian banks can enhance efficiency, customer service, and security in the evolving financial landscape.