Mumbai : The Deputy Governor T. Ravi Shankar of the Reserve Bank of India (RBI) issued a cautionary note to banks and associated stakeholders, emphasizing the importance of remaining alert to legal, cybersecurity, and skill-related risks stemming from Artificial Intelligence (AI). Shankar stressed the need for a redefinition of regulations in tandem with the adoption of AI and General Artificial Intelligence (AGI).
Revisiting Regulations Amidst AI Adoption
Shankar underscored the necessity for the industry to pay heed to the forthcoming regulations under the Digital Personal Data Protection (DPDP) Act, highlighting the possibility of banks inadvertently breaching these regulations. He urged preparation as a crucial aspect of readiness.
Addressing the 19th Annual Banking Technology Conference organized by the Indian Banks’ Association (IBA) in Mumbai, Shankar urged banks to prioritize customer convenience in their service offerings. He emphasized the importance of crafting regulations with customer convenience in mind and continually improving upon them.
Adapting to Technological Evolution
Shankar acknowledged that while certain technologies may render certain job roles redundant, they also give rise to new employment opportunities. Therefore, he stressed the importance of upskilling the workforce to meet the demands of evolving technologies.
Prioritizing Customer-centric Practices
In his address, Shankar reiterated the need for banks to remain customer-centric in their approach, particularly in the formulation of regulations. He emphasized the importance of crafting regulations that enhance customer convenience and continuously refining them to meet evolving needs.
RBI’s proactive stance
Deputy Governor T. Ravi Shankar’s address serves as a wake-up call to the banking sector, urging stakeholders to remain vigilant against the multifaceted risks posed by AI adoption. By redefining regulations, prioritizing customer convenience, and investing in workforce upskilling, banks can navigate the challenges posed by technological evolution effectively.
In conclusion, the RBI’s proactive stance underscores the critical importance of staying abreast of technological advancements while ensuring regulatory compliance and customer satisfaction remain at the forefront of banking operations.