Leverage advanced tech to reduce costs, RBI Governor Malhotra tells banks

Takes stock of FCNR (B) deposit mobilisation

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday urged banks to leverage advanced technology, including artificial intelligence (AI), to reduce costs, improve operational efficiency and strengthen customer experience while ensuring cybersecurity.

 

During the RBI's half-yearly meetings with the managing directors (MDs) and chief executive officers (CEOs) of public sector banks and select private sector banks in Mumbai, Malhotra suggested banks leverage advanced technologies, including AI, to expand their reach, improve operational efficiency, reduce costs and enhance customer experience, while ensuring robust cybersecurity, strong internal controls and safeguards against fraud and data misuse, a statement from the central bank said.

 

 

Sources said the central bank also sought feedback from bank CEOs on FCNR(B) deposit mobilisation after a concessional scheme was announced last month to attract foreign capital. On Monday, Finance Minister Nirmala Sitharaman also met chiefs of state-owned banks and asked them to step up outreach to non-resident Indians (NRIs) and introduce innovative deposit products to maximise such deposit mobilisation.

 

According to the RBI statement, Malhotra also stressed the need to cultivate a passion for excellence in customer service by placing customers at the heart of banking operations.

 

He also acknowledged the broad-based growth of the banking sector and urged lenders to continue meeting the needs of all segments of the economy with renewed vigour and prudence.

 

During the meeting, CKYCR, early detection of FICN, adoption and/or popularisation of MuleHunter, CBDC, ULI, Account Aggregator, FX-Retail, Retail Direct, etc., were also discussed.

 

Deputy Governors Swaminathan J., Poonam Gupta, S. C. Murmu and Rohit Jain, along with the executive directors in charge of supervision, regulation, enforcement, consumer education and protection, and financial inclusion, also attended the meeting.

 

The participants shared their feedback on these aspects as well as other matters broadly affecting the financial sector, the RBI said.