Reserve Bank of India Governor Sanjay Malhotra said on Tuesday Indian banks
should speed AI deployment via technology and infrastructure investment and
staff upskilling. He warned wider AI use brings risks — model bias, opaque
decision-making, data-privacy and cybersecurity threats — and said reliance on a
small set of AI models or vendors could expose the banking system to correlated
errors; banks should be cautious when depending on external suppliers.
