Search
Close this search box.

We are creating some awesome events for you. Kindly bear with us.

India’s Central Bank to Deploy AI/ML for Enhanced Regulatory Supervision

The country’s central bank, the Reserve Bank of India (RBI) is planning to extensively use artificial intelligence (AI) and machine learning (ML) to analyse its database and improve the regulatory supervision of banks and non-banking financial companies (NBFCs).

According to a release on the government’s AI portal, RBI plans to leverage the benefits of advanced analytics at the Department of Supervision, which has been developing and using ML models for supervisory examinations. RBI is planning to hire external experts for the initiative.

The central bank has floated an expression of interest (EoI) for engaging consultants in the use of advanced analytics, AI, and ML to generate supervisory inputs. The selected consultants will be required to explore and profile data with a supervisory focus, among other things.  The objective of this step is to enhance the data-driven surveillance capabilities of the Reserve Bank, the EoI said.

RBI’s supervisory jurisdiction covers banks, urban cooperative banks (UCB), NBFCs, payment banks, small finance banks, local area banks, credit information companies, and other Indian financial institutions. It undertakes the continuous supervision of such entities with the help of on-site inspections and off-site monitoring, the release explained.

Across the world, regulatory and supervisory authorities are using ML techniques to assist supervisory and regulatory activities. Most of these techniques are exploratory. However, they are rapidly gaining popularity and scale. To collect data, AI and ML technologies are used for real-time data reporting, effective data management, and dissemination. For data analytics, the algorithms are used to monitor supervised firm-specific risks, including liquidity risks, market risks, credit exposure and concentration risks, misconduct analysis, and the misspelling of products.

In 2018, RBI created a fintech unit in the department of regulation. In 2019, RBI came out with a framework for a regulatory sandbox to provide a structured avenue for the regulator to engage with the ecosystem and to develop innovation-enabling or innovation-responsive regulations. RBI decided to push innovation primarily to bring down the cost of financial services and boost financial inclusion. As most fintech activities then were in the area of payments, the unit was transferred to the Department of Payment and Settlement Systems (DPPS) in July 2020.

Earlier this year, RBI set up a department to help create regulations for the financial technology sector, which subsumed the DPPS. As OpenGov Asia reported, the department facilitates innovation and identifies and addresses challenges and opportunities in the field. The department deals with matters related to inter-regulatory and international coordination on fintech. It reports to the RBI’s centralised administration division.

The department provides a framework for research in the field that can aid policy interventions. In an internal circular, RBI said that the department addresses matters related to the facilitation of constructive innovations and incubations in the fintech sector if they have wider implications for the financial sector/markets and fall under the purview of the bank.

Furthermore, for enhanced financial inclusion, RBI issued the Framework for Facilitating Small Value Digital Payments in Offline Mode, which allows offline digital payments up to IN₹ 200 (US$2.65) per transaction, subject to an overall limit of IN₹2,000 (US$26.9). An offline digital payment means a transaction that does not require internet or telecom connectivity.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.