AI & AI alone can help limit AI frauds: RBI Governor

Reserve Bank of India Governor Sanjay Malhotra on Tuesday called for increased use of artificial intelligence (AI) in the banking system to stay ahead of fraudsters . “It is AI and AI alone that can help limit AI frauds,” Malhotra said at the FIBAC 2026 conference in Mumbai.

“Fraud today moves at a speed of an (application programming interface) API call. Rules-based fraud engines, however well-designed, are perpetually one step behind the fraudsters, who adapt more frequently. It is only AI and machine learning models, which continuously learn from these transaction patterns, that can identify anomalies in real time, rather than after the loss has occurred.”