New Delhi (India), July 14 (ANI): Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday asked banks to leverage advanced technologies, including Artificial Intelligence (AI), to improve operational efficiency, expand financial services and enhance customer experience. He also stressed the need for strong cyber security and strong internal controls.

The remarks were made during the RBI's half-yearly meeting with managing directors and chief executive officers of public sector banks and select private sector banks in Mumbai. The meeting was chaired by the Governor and was attended by Deputy Governors Swaminathan J., Poonam Gupta, S. C. Murmu and Rohit Jain as well as executive directors overseeing supervision, regulation, enforcement, consumer education and protection, and financial inclusion.

Emphasis on the role of technology and cyber security

In his inaugural address, the Governor said India's banking sector has witnessed broad-based growth and he urged lenders to continue meeting the financial needs of all sectors of the economy with "renewed vigor and prudence". Highlighting the growing role of technology in banking, he encouraged banks to adopt AI and other advanced digital tools to improve productivity, reduce operating costs and widen access to financial services. At the same time, he cautioned that technology adoption must be accompanied by strong cyber security measures, effective internal controls and safeguards against fraud and misuse of customer data.

Emphasis on customer-centric banking

The Governor also stressed the importance of customer-centric banking and urged lenders to develop a culture of excellence in customer service by placing customers at the center of their operations.

Other major initiatives were also discussed

Apart from technology and customer service, the discussions covered several key initiatives aimed at strengthening the financial ecosystem. These included the Central KYC Records Registry (CKYCR), early detection of Fake Indian Currency Notes (FICN), adoption and widespread use of MuleHunter fraud detection system, Central Bank Digital Currency (CBDC), Unified Lending Interface (ULI), Account Aggregator Framework, FX Retail and RBI Retail Direct Platform.

According to RBI, the participants shared their feedback on these initiatives and discussed a range of issues affecting the financial sector.

The meeting is part of the central bank's regular interaction with the banking industry, aimed at reviewing regional developments, discussing emerging challenges and strengthening cooperation on policy implementation, technology adoption and financial inclusion. (ANI)

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