RBI Governor Sanjay Malhotra says banks should adopt artificial intelligence (AI) in lending, comparing its potential impact to how UPI transformed payments. He argues that AI can improve how lenders assess creditworthiness and manage lending operations.
Malhotra links the move to India’s digital infrastructure, saying the environment is ready for another technology-led shift in financial services. He adds that AI may help expand the borrower base by using alternative data, reduce operational costs, and strengthen fraud detection through real-time monitoring. He also stresses that banks should prioritize AI governance and risk management to protect financial stability as these systems are deployed.
Across the coverage provided, the focus remains on the same broad set of expectations—greater inclusion, efficiency, and improved risk controls—paired with a consistent warning that governance frameworks and safeguards are necessary before scaling AI in lending decisions.
