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.
Click to View MoreThe Kerala Single Dwelling Place Protection Bill aims to protect families from losing their homes due to loan defaults by preventing banks and financial institutions from seizing single dwelling properties under certain conditions. It covers loans up to Rs 5 lakh and provides relief to low-income borrowers with limited land and income. The bill establishes committees to review cases and allows the government to take over debts or absorb outstanding loans into housing schemes. This is a pioneering state-level effort following the Centre’s inaction on amending the SARFAESI Act to protect small borrowers.
Click to View MoreSmall Savings Schemes like PPF, NSC, SCSS, Sukanya Samriddhi Yojana, KVP, and MIS are government-backed instruments aimed at mobilizing household savings. As of Oct–Dec 2025, interest rates remain attractive (PPF 7.1%, SCSS 8.2%), ensuring investor confidence. Key initiatives include digitalization through Aadhaar-based e-KYC, freezing inactive accounts after 3 years, and exploring sachet-sized investments to promote financial inclusion. These measures enhance accessibility, transparency, and fiscal sustainability, making small savings schemes a safe and convenient investment option for all sections of society.
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The 2025 Sa-Dhan report reveals a sharp rise in microfinance loan delinquencies across India, with 6.2% of loans overdue by more than 30 days—up from 2.1% in 2023–24. Bihar recorded the highest outstanding microfinance loans (₹57,712 crore) and the highest delinquency rate at 7.2%. Rural borrowers were most affected, with overdue rates exceeding those in urban areas, highlighting growing financial distress in rural economies and raising concerns over the sustainability of microfinance-led financial inclusion.
Click to View MoreIndia’s fintech sector has rapidly evolved through digital innovation, government support, and growing internet access—transforming payments, lending, and financial inclusion—while facing challenges like regulation, data privacy, and cybersecurity.
Click to View MoreIndia’s UPI expands to Qatar via Qatar National Bank and Qatar Duty Free, enabling seamless, real-time payments for Indian travelers. Driven by NPCI International, it boosts tourism, retail, and bilateral ties, showcasing India’s digital strength and advancing global payment interoperability.
Click to View MoreThe MSME sector is the backbone of the Indian economy, driving employment, innovation, and exports, but faces challenges related to credit access, technology adoption, and skilled workforce, requiring continued government support and focus on digitalization and sustainability for resilient growth.
Click to View MoreIndian Insurance sector is predicted to double to Rs 25 lakh crore by 2030, according to a report by IBAI and McKinsey & Company. The sector is crucial for economic growth, social security, financial inclusion, and national resilience. Government schemes like Pradhan Mantri Jeevan Jyoti Bima Yojana and PMSBY provide low premiums and risk coverage.
Click to View MoreThe Reserve Bank of India has published the Financial Inclusion Index (FII) 2025, measuring progress in integrating everyone into the formal financial system. The index measures inclusion based on three pillars: Access (35%), Usage (45%), and Quality (20%). The index shows improvement in financial inclusion, largely due to increased usage and quality of financial services.
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