Indian banks advised to adopt AI and Blockchain technology

A top federal official of India’s central bank has advised all the banks to adopt artificial intelligence and blockchain technology in order to gain sustainable growth and stability.

Deputy Governor Mahesh Kumar Jain in a conference organized by the Reserve Bank of India (RBI) for the directors of Indian banks discussed the risk strategies around sustainable growth and stability.

Jain spoke about the importance of effective corporate governance and governance structure and processes when it comes to staying prepared for future risks. Technological disruptions, evolving customer expectations and cybersecurity threats, among other things, have put forth new sets of risks for the banks across technology, business and operations. His advice for addressing these challenges was to focus on tech adoption.

“To prepare for the future," Jain recommended that Indian banks “adopt innovative technologies such as AI and blockchain," along with focusing on digital transformation, enhancing customer experience, and investing in cybersecurity measures.

The Reserve Bank of India (RBI) introduced digital currency on November1 and started being tested for offline functionality in March. During that time, Ajay Kumar Choudhary, Executive Director of RBI shared India’s intention to use its CBDC as a medium of exchange.