NPCI launches pilot to implement AI model in collaboration with banks

The National Payments Corporation of India (NPCI) has launched a pilot project to implement a federated AI model in collaboration with four leading banks from both public and private sectors. This initiative aims to enhance fraud detection and risk assessment across the banking ecosystem, according to NPCI chief risk officer Viswanath Krishnamurthy.

Addressing reporters, Krishnamurthy explained that under this model, banks will share key insights from their AI-driven fraud detection systems with NPCI. This will enable a comparative analysis of risk scores, fostering a feedback loop between the banks’ AI models and NPCI. The iterative process will refine predictive analytics, strengthening overall financial security.