RBI Deputy Governor sounds alarm on AI: ‘Unchecked AI could endanger your money’

RBI Deputy Governor T Rabi Sankar recently raised concerns about the dual nature of artificial intelligence (AI) at the Global Fintech Fest 2025, warning that while AI brings immense efficiency, innovation, and financial inclusion, it also carries unprecedented risks if left unchecked. Emphasizing the financial sector’s reliance on trust, Sankar noted that even minor errors can have significant consequences, making careful oversight essential. He called for “safety by design” in AI deployment to prevent destabilization of markets, payment systems, and consumer confidence. The RBI has already implemented AI tools like MuleHunter.ai to combat fraud, highlighting the technology’s potential when managed responsibly.

RBI Deputy Governor highlights dual narrative of AI in finance