RBI Governor asks banks to keep meaningful human oversight over AI decisions

MUMBAI: Reserve Bank Governor Sanjay Malhotra on Tuesday urged banks to ensure “meaningful human oversight” while designing and deploying artificial intelligence models, stressing that blaming AI tools for faulty decisions will not be acceptable to the regulator.

Addressing the annual FIBAC event in Mumbai, Malhotra said banks should use AI to augment, rather than simply replace, human judgment and improve customer service. He said the RBI views AI as a capability to be responsibly harnessed, rather than merely a risk to be contained, and encouraged banks to adopt the technology instead of remaining on the sidelines.