“AI is demonstrating its ability in ways unimaginable a few years back. India too has been a notable participant in this journey. As with all powerful innovations, AI carries a dual narrative. It promises extraordinary efficiency, inclusion and innovation. But if left unattended, it could pose unprecedented threats,” said Shri T Rabi Sankar, Deputy Governor, Reserve Bank of India (RBI), addressing the Global Fintech Fest 2025 today. The conference is being organized by the Payments Council of India (PCI), the National Payments Corporation of India (NPCI), and the Fintech Convergence Council (FCC), October 7 – 9, at the Jio World Centre, Mumbai.

GFF 2025 is supported by the Ministry of Electronics and Information Technology; the Department of Economic Affairs and the Department of Financial Services, Ministry of Finance; the Department of Promotion of Industry and Internal Trade, Ministry of Commerce and Industry; New, Emerging and Strategic Technology Division,  the Ministry of External Affairs; the Reserve Bank of India (RBI); the Securities and Exchanges Board of India (SEBI), the Insurance Regulatory and Development Authority of India (IRDAI) and the International Financial Services Centres Authority (IFSCA).

Speaking at a session on ‘Responsible AI for Finance: Balancing Innovation with Financial Stability’, Shri T Rabi Sankarsaid, “In finance, the margin for error is even narrower as financial institutions are built on trust and economies prosper on stability. Therefore, the integration of AI in financial systems must be approached as a matter of profound responsibility with due recognition and mitigation of risks.”

 “Equally important is that AI systems are subjected to rigorous oversight and layered with inherent checks. Financial AI applications in particular must be designed such that they cannot inadvertently destabilize markets, or payment systems, or consumer confidence. This approach demands safety by design rather than safety as an after-thought. Safeguards must be embedded throughout the lifecycle from conception, data training to model validation and real-world application. Retrofitting safety once it has materialized is inadequate and potentially destabilizing,” he added,

Shri T Rabi Sankar said, “Progress and prudence must go hand in hand. RBI has also taken initiatives for industry through RBI Innovation Hub, such as the MuleHunter.ai, for combating the menace of mule accounts. Unlike the traditional rule-based system currently used, Mule Hunter offers greater accuracy and precision with significantly low false positive rates. Currently the model has been deployed in about 20 commercial banks.”

Speaking on the debate about AI and job displacement, Shri T Rabi Sankar said, “Whether AI will displace jobs in the long run would depend on whether it is like other transformative technology that happened in history like the industrial revolution or the invention of electricity.”

 To conclude, Shri T Rabi Sankar said, “it is essential to reiterate that AI must remain a force for good, empowering individuals, strengthening institutions and enhancing the resilience of our financial systems.”

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For more information on GFF 2025 please visit: https://www.globalfintechfest.com/

About Payments Council of India (PCI)

The Payments Council of India (PCI) was formed under the aegis of the Internet and Mobile Association of India (PCI) in the year 2013 catering to the needs of the digital payment industry. The Council was formed inter-alia to represent the various non-banking payment industry players, and to address and help resolve various industry-level issues and barriers that require discussion and action.

The council works with its 180+ members, encompassing over 90% of the industry to promote payments industry growth and to support our national goals of ‘Cashless Society’ and ‘Growth of Financial Inclusion’ which is also the Vision Shared by the RBI and the Government of India. PCI represents the complete digital payments ecosystem of India through its various committees representing different sectors.

About Fintech Convergence Council (FCC)

Established in 2018, the Fintech Convergence Council (FCC) is an industry body representing the collective voice of fintech companies in India. Since its inception, FCC has evolved into a leading platform with a diverse membership of over 200 fintech entities across key segments including digital lending, wealth, insurance, digital financial services, RegTech, and credit bureaus.

FCC’s core mission is to address sector-specific challenges and provide a unified platform for dialogue within the broader BFSI (Banking, Financial Services, and Insurance) ecosystem. The council actively engages with regulators and policymakers to help shape progressive policy frameworks and promote a balanced approach to innovation and compliance.

In addition to policy advocacy, FCC also focuses on knowledge sharing, strengthening consumer education, and promoting responsible finance through awareness-building initiatives on customer protection, digital literacy, and best practices in fintech.