AI amplifies systemic risk to financial sector, says India's Reserve Bank boss

RBI governor Shaktikanta Das, speaking at the RBI@90 High-Level Conference, warned that while AI and ML can expand financial services, they also introduce systemic and cybersecurity risks through market concentration, opaque algorithms, and increased exposure to cyber attacks and data breaches. He urged banks to adopt robust risk mitigation, remain alert to social media–driven liquidity stress, and advance cross-border payment efficiencies via UPI and potential CBDC interoperability.