The Reserve Bank of India (RBI) is looking to future-proof the country’s banking sector. RBI Deputy Governor, Mahesh Kumar Jain, has made a compelling call to action: it’s time for Indian banks to adopt Artificial Intelligence (AI) and Blockchain technology.
Emphasizing the need for robust corporate governance, Jain stressed the significance of preparing for emerging risks. Technological disruptions, evolving customer expectations, and increasing cybersecurity threats have drastically reshaped the banking landscape. Banks face a growing number of challenges in the realms of technology, business, and operations. To effectively counter these challenges, Jain advises a strategic focus on technological adoption.
“Adopt innovative technologies such as AI and Blockchain,” he urged at an RBI-organized conference for bank directors. This critical shift toward embracing digital transformation, enhancing customer experience, and bolstering cybersecurity measures, Jain suggests, is a promising path forward for India’s banking industry.
India is not alone in its digital ambitions. Its neighbor, Pakistan, recently unveiled a grand plan to train one million IT graduates in AI by 2027. As countries across the region start recognizing the potential of these technologies, we can expect to see a surge in innovative use-cases and applications.
For India, the adoption of AI and Blockchain in banking is a step towards building a more resilient financial ecosystem. It also aligns with India’s broader digital strategy, including its ongoing pilot tests for a central bank digital currency (CBDC).
The future of banking in India, it seems, will be digital. This digital transformation represents not only a response to emerging threats but also a proactive approach to harnessing the opportunities that disruptive technologies can offer.
Stay tuned as we follow India’s journey in the exciting world of AI and Blockchain. The road to the future of banking, after all, is being paved with lines of code.