The Reserve Bank of India (RBI) has projected that operational efficiency in the country’s banking sector could rise by as much as forty-six per cent through the adoption of generative artificial intelligence (GenAI).
In a report released this week, the central bank said GenAI is set to transform how financial institutions understand customer behaviour, personalise services, manage risk, and reduce costs.
“GenAI is poised to improve banking operations in India by up to forty-six per cent,” the RBI stated.
According to the report, banks are increasingly turning to AI to boost productivity, strengthen compliance, cut operational costs, grow revenues, and foster innovation in financial products and services.
The technology’s potential is particularly evident in alternative credit scoring. AI-powered systems are now enabling access to credit for individuals with little or no formal banking history by analysing non-traditional data sources such as utility bill payments, mobile usage, GST filings, and e-commerce activity.
Customer service is also shifting, with AI-driven chatbots handling routine inquiries around the clock, allowing staff to focus on complex matters and improve response times.
The RBI estimates that India’s GenAI market in financial services could surpass ₹1.02 lakh crore (approximately USD twelve billion) by 2033, expanding at an annual rate of twenty-eight to thirty-four per cent.
The report concludes that, if deployed responsibly, generative AI can make Indian banking more efficient, profitable, and inclusive, while enhancing customer experience.
