RBI Governor Shaktikanta Das Talks About AI in Financial Services at Bengaluru Conference
On August 26, in Bengaluru, Karnataka, the Reserve Bank of India (RBI) Governor Shaktikanta Das spoke about the integration of artificial intelligence (AI) into financial services. He was speaking at the Global Conference on Digital Public Infrastructure and Emerging Technologies.
Opportunities with AI
Governor Das highlighted the significant role of AI in the financial sector. He mentioned that AI is being used in services like chatbots, data processing, fraud risk management, and credit modeling. He said that integrating AI into Digital Public Infrastructure (DPI) can enhance its capabilities and efficiency.
For customers, AI can provide personalized products and faster services. Financial institutions benefit from better risk and fraud management, streamlined operations, and lower compliance costs. Regulators gain better oversight and real-time monitoring, improving market stability.
Challenges with AI
However, Governor Das also pointed out challenges such as data privacy concerns and the need for ethical AI governance to prevent bias. He emphasized that AI models must be explainable, meaning they should be able to explain why certain results are produced.
He warned that AI could be misused to spread misinformation, potentially harming digital systems and financial institutions.
India’s AI Initiatives
Governor Das mentioned that India is the lead chair of the Global Partnership on Artificial Intelligence (GPAI) in 2024. The Union Cabinet has approved a national-level India Artificial Intelligence mission with a budget of Rs 10,371.92 crore. This mission focuses on Compute Capacity, Foundational Models, Datasets, Application Development, Future Skills, Startup Financing, and Safe AI.
The Ministry of Electronics and Information Technology (MeitY) is also working on initiatives to ensure safety in the AI sector. India is setting up an AI Research Analytics and Knowledge Dissemination Platform to develop AI-enabled products and solutions for India-specific challenges.
Doubts Revealed
RBI -: RBI stands for Reserve Bank of India. It is the central bank of India, which means it controls the money supply and interest rates in the country.
Governor -: A Governor in this context is the head of the Reserve Bank of India. He is responsible for making important decisions about the country’s money and banking system.
Shaktikanta Das -: Shaktikanta Das is the current Governor of the Reserve Bank of India. He is an important person who helps manage India’s money and banking policies.
AI -: AI stands for Artificial Intelligence. It is a type of technology that allows computers to learn and make decisions, almost like a human brain.
Financial Services -: Financial services are services provided by banks and other institutions to help people manage their money, like saving, borrowing, and investing.
Bengaluru -: Bengaluru is a big city in India, also known as Bangalore. It is famous for being a technology hub, where many tech companies and conferences are held.
Data Privacy -: Data privacy means keeping people’s personal information safe and not sharing it without permission. It is very important when using technology like AI.
Ethical Governance -: Ethical governance means making sure that the rules and decisions made by organizations are fair and right, especially when using new technologies like AI.
National AI Mission -: The National AI Mission is a big project by the Indian government to promote and develop AI technology in the country. It has a lot of money set aside to help make this happen.
AI Research Platform -: An AI research platform is a place where scientists and experts study and develop new AI technologies to solve problems, especially those specific to India.
