India is working to build big and world-class banks to support its growing economy and global competitiveness. Reforms like the Indradhanush Plan, Atmanirbhar Bharat recapitalization, EASE reforms, and FSIB governance improvements have strengthened public sector banks. Digital innovations like UPI and Public Tech Infrastructure, along with the IFSC at GIFT City, position India as a leader in financial technology and global banking. The focus going forward is on capital adequacy, governance, digitalization, risk management, sustainability, and global integration to create banks that are efficient, resilient, and internationally competitive.
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Artificial Intelligence (AI) is transforming the banking sector by enabling faster decision-making, improved customer experiences, and operational efficiency. However, it also introduces risks such as bias, model errors, data privacy issues, and regulatory challenges. AI auditing ensures these systems are ethical, transparent, and accountable throughout their lifecycle. Frameworks like RBI’s FREE-AI, along with global standards such as NIST AI RMF and CSA AICM, guide banks in implementing responsible AI. The way forward involves pragmatic guardrails, continuous monitoring, human oversight, and multi-stakeholder collaboration to balance innovation with risk, ensuring trustworthy and inclusive AI-driven banking.
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