Setty bats for ‘know your agent’ framework as AI enters banking

Banks will need to develop a “know your agent” framework covering identity, authentication, customer consent, transaction limits and audit trails as artificial intelligence begins to participate directly in financial transactions, State Bank of India Chairman CS Setty said on Thursday.

“Banks have spent decades building robust processes about know your customer. As agents begin to participate in financial transactions, we will increasingly need to think about know your agent,” Setty said at the Global Fintech Fest 2026.