RBI Deputy Governor Shirish Chandra Murmu
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Reserve Bank of India (RBI) Deputy Governor Shirish Chandra Murmu has urged banks to use artificial intelligence (AI) not just to improve efficiency but to expand financial inclusion and strengthen customer trust. Speaking at the CNBC-TV18 Banking Transformation Summit, Murmu said AI offers a major opportunity to identify deserving borrowers who remain outside the formal credit system and bring them into the banking fold.<\/p>\n
Highlighting the strength of the Indian banking sector, Murmu noted that banks are well-capitalised, profitable and resilient. However, he cautioned that the success of banking should not be measured solely by balance sheet growth. Instead, the focus should be on how effectively financial services reach underserved customers and support broader economic development.<\/p>\n
The Deputy Governor said alternative data sources such as cash flows, GST filings, utility payments, mobile usage and geospatial information can help banks assess borrowers who lack traditional credit histories. He stressed that AI should be used to widen access to credit rather than simply improve services for existing customers.<\/p>\n
At the same time, he warned against excessive reliance on algorithms, emphasising that human judgment remains essential. Bank boards and senior management, he said, must retain accountability for decisions made with AI assistance and ensure robust governance, oversight and risk management.<\/p>\n
Murmu also underlined the importance of transparency in AI-driven decisions, stating that customers should be informed when automated systems are being used and must have access to human review when decisions significantly affect them. Trust, he said, remains the foundation of the banking system and might define the next era of Indian banking.<\/p>\n
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