Central Bank Digital Currency (CBDC) is a sovereign digital form of money issued by central banks to complement physical cash and existing digital payment systems. It aims to enhance payment efficiency, financial inclusion, monetary sovereignty, and cross-border transactions while offering a safer alternative to private digital currencies. However, challenges related to cybersecurity, privacy, banking stability, and interoperability necessitate a cautious, phased, and well-regulated implementation supported by strong domestic and international coordination.
Click to View MoreArtificial 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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