Generative AI could boost banking efficiency in India by 46%, says RBI

The report also highlighted how AI chatbots are transforming customer service by managing routine queries around the clock.

By Storyboard18| Aug 14, 2025 12:33 PM

Generative AI could boost banking efficiency in India by 46%, says RBI

Generative Artificial Intelligence (AI) has the potential to enhance banking operations in India by up to 46%, according to a new report by the Reserve Bank of India (RBI).

The central bank said AI adoption in financial services is being fuelled by a range of objectives — from enhancing customer experience and boosting employee productivity to increasing revenue, cutting operational costs, ensuring regulatory compliance, and enabling the creation of innovative products.

“GenAI is poised to improve banking operations in India by up to 46%,” the RBI noted in the report, adding that the technology’s advanced analytics capabilities can help banks better understand customer behaviour, manage risks more effectively, and control costs, as reported by ANI.

AI-powered alternative credit scoring models, which assess creditworthiness using non-traditional data sources, are also seen as a game-changer. For India’s vast unbanked population, this could mean access to formal credit through indicators such as utility bill payments, mobile usage patterns, GST filings, and e-commerce transactions — helping integrate “thin-file” or “new-to-credit” customers into the system.

The report also highlighted how AI chatbots are transforming customer service by managing routine queries around the clock, speeding up resolution times, and freeing human agents for more complex cases.

Globally, AI in financial services is witnessing rapid uptake. In India, the generative AI segment alone is projected to surpass ₹1.02 lakh crore (around USD 12 billion) by 2033, with an annual growth rate of 28–34%, as reported by ANI.

The RBI concluded that with the right implementation, AI could make India’s banking sector more efficient, inclusive, and customer-centric, while contributing significantly to revenue growth.