Generative AI set to improve banking operations in India by 46%: RBI Report
The central bank noted that AI can help financial institutions better understand customer behaviour, improve efficiency, and offer more personalised services at scale.
Finance
Value and Valuation Masterclass - Batch 4
By CA Himanshu Jain
View Program
Artificial Intelligence
AI For Business Professionals Batch 2
By Ansh Mehra
View Program
Finance
Value and Valuation Masterclass - Batch 3
By CA Himanshu Jain
View Program
Artificial Intelligence
AI For Business Professionals
By Vaibhav Sisinity
View Program
Finance
Value and Valuation Masterclass - Batch 2
By CA Himanshu Jain
View Program
Finance
Value and Valuation Masterclass Batch-1
By CA Himanshu Jain
View Program
It stated, "GenAI is poised to improve banking operations in India by up to 46 per cent".
The report said AI is increasingly being adopted across the financial services sector. This adoption is being driven by multiple needs, including enhancing customer experience, improving employee productivity, increasing revenue, reducing operational costs, ensuring regulatory compliance, and enabling the creation of new and innovative products.
As per report, Generative AI, in particular, is playing a major role by using advanced analytics to help institutions understand customer behaviour, manage risks more effectively, and control costs.
Live Events
AI-powered alternative credit scoring models are also helping expand credit access to people who are underserved by the traditional banking system.
RBI also stated that in India, where millions of people still do not have access to formal banking, AI can help assess the creditworthiness of potential borrowers using non-traditional data sources.
These may include information such as utility bill payments, mobile usage patterns, GST filings, or e-commerce transactions. Such technology can help bring "thin-file" or "new-to-credit" customers into the formal financial system.
The report also pointed out that AI chatbots are transforming customer service by handling routine queries around the clock, providing faster resolutions, and freeing up human staff for more complex tasks.
Globally, the adoption of
AI in financial services
has been growing rapidly.
The RBI report said that AI is expected to directly contribute to revenue growth for the industry in the coming years. The generative AI segment alone is projected to exceed Rs 1.02 lakh crore (about USD 12 billion) by 2033, growing at an annual rate of 28-34 per cent.
The findings highlighted that with proper use, AI can make banking in India more efficient, inclusive, and customer-friendly while driving strong growth for the sector.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
27 minutes ago
- Hans India
Time for investors to stay cautious amid global uncertainty
The Independence week saw both the benchmark indices the Sensex and the Nifty finally break free from their six-week losing streak, registering a healthy 1.10 per centgain and closing at 80,598 and 24,631 respectively. The rebound has brought relief after a prolonged phase of market weakness. Prime Minister Narendra Modi announced on Independence Day, a 'double Diwali' bonanza for the people of India, saying that next generation of Goods & Services Tax (GST) reforms will be rolled out by October this year. The GST rationalisation will help lower tax rates, lower the cost of daily essentials, benefit the MSMEs and boost the economy. Finance Minister Nirmala Sitharaman indicated that the government envisages two slabs — standard and merit — plus special rates for select items, replacing the current four brackets of 5%, 12%, 18 per centand 28%, with luxury and sin goods attracting an additional levy. Trump and Putin met in Alaska, but failed to reach a breakthrough on ending the war in Ukraine, despite optimism from the US president. Post meeting, Trump's statement that 'he will not have to think of retaliatory tariffs on countries buying Russian oil right now but may have to 'in two or three weeks' now offers at least a temporary relief to countries like India.' It seems that an additional tariff of 25 per centon India beginning August 27 for importing crude oil from Russia, will be on a backburner feel observers. Trump administration's imposing a 50 per centtariff on Indian imports is not a reason to sell Indian equities. Instead, it's a reason to buy them since 'it is only a matter of time before Trump backs off the stance, which is not in America's interest' say market players. In the near term, market direction will be dictated by developments post Trump-Putin meeting, expectations over contours of GST reforms, international crude oil prices, rupee-dollar movement and FII behavior. In the coming week, a cautious and stock-specific approach is advised. With the Indices still consolidating below key resistance levels and no breakout confirmation, aggressive buying should be avoided. FII Chit Chat: FIIs are selling Indian equities like there's no tomorrow, with secondary market outflows in 2025 already hitting record levels — and four months of the year still to go. Year-to-date, FIIs have offloaded more than Rs 1.5 lakh crore in the secondary market, surpassing all previous annual records. The sell-off is being driven by slowing corporate earnings, unattractive valuations, heightened geopolitical uncertainties, and more appealing opportunities in overseas markets. Indo-US trade deal uncertainty and a potential extension of US-China negotiations are additional factors contributing to FII outflows. China, after years of underperformance relative to India, now appears poised for a potential tariff advantage. In valuation terms, India's benchmark indices are trading at just over 20 times one-year forward earnings, above their 10-year average of 19.3 times. It is pertinent to observe that FIIs are actively participating in primary markets despite the exodus from secondary market. Global 'hot' money in search of short-term returns is attracted to 15–20 percent listing gains in IPO segment. Some IPOs feature unique business models in which FIIs are willing to take long-term positions. Expect limited upside and possible downside in Indian markets over the next two to three quarters. A cautious, defensive, and tactical approach is must. Be prepared to invest in a down market and to 'get out' in a soaring market, as per the philosophy of Warren Buffett. FUTURES & OPTIONS / SECTOR WATCH Snapping a six-week losing streak, markets ended nearly a percent higher during the week ended. Despite exuberant start, the momentum moderated during the later part of the week amid mixed signals. The recovery was broad-based, led by Healthcare, Auto, and IT counters on the back of bargain hunting and strong domestic demand expectations. Consumer discretionary stocks also gained nearly 2%, reflecting optimism around consumption. S&P Global upgraded India's long-term unsolicited sovereign credit rating from 'BBB-' to 'BBB', reflecting a more stable economic outlook for the India. In the options market, prominent Call open interest for Nifty was seen at the 25,000 and 24,700 strike, while the notable Put open interest was at the 24,600 and 24,500 strike. For Bank Nifty, the prominent Call open interest was seen at the 56,000 strike, whereas marginal Put open interest at the 55,000 strike. Implied volatility (IV) for Nifty's Call options settled at 10.87%, while Put options concluded at 11.49%. The India VIX, a key indicator of market volatility, concluded the week at 12.14%. The Put-Call Ratio Open Interest (PCR OI) stood at 0.93 for the week. The options data and PCR suggest a phase of short-term consolidation in the market. The PCR fluctuating between 0.78 and 1.08 indicates a balanced sentiment, with no signs of extreme bullish or bearish positioning. Nifty has bounced back and is now trading above its 100-day Exponential Moving Average (EMA), while Bank Nifty continues to trade above the same. The long-term trend remains intact and bullish. In the upcoming sessions, Nifty may test resistance levels at 24,800 and 25,000, while support is seen around 24,400–24,200. Stocks looking good are Apollo Hosp, Mannapuram, Nuvama, PFC, Siemens, Supreme Inds and Uno Minda. Stocks looking weak are Astral, Blue Star, Bandhan Bank, Jubilant Foods, Kalyan Jewellers, PGEL and Tata Chemicals. (The author is a senior maket analyst and former vice-chairman, Andhra Pradesh State Planning Board)
Business Standard
27 minutes ago
- Business Standard
Market opens on strong note; Nifty above 24,950 mark; VIX rises 2.50%
The domestic equity indices traded with major gains in early trade supported by hopes of big changes to the GST system and a recent upgrade to Indias credit rating. During his Independence Day speech, Prime Minister Narendra Modi said the government plans to bring generational GST reforms before Diwali, which could benefit sectors like auto, FMCG, and consumer goods. However, global worries remain, including the Russia-Ukraine conflict and possible 25% US tariffs on Indian products starting August 27. The Nifty traded above the 24,950 mark. Auto, consumer durables and private bank shares advanced while pharma and IT shares declined. At 09:30 IST, the barometer index, the S&P BSE Sensex, jumped 1,037.49 points or 1.34% to 81,662.28. The Nifty 50 index rallied 348.40 points or 1.41% to 24,983.70. In the broader market, the S&P BSE Mid-Cap index added 1.02% and the S&P BSE Small-Cap index rose 0.86%. The market breadth was strong. On the BSE, 1,765 shares rose and 655 shares fell. A total of 214 shares were unchanged. Foreign portfolio investors (FPIs) sold shares worth Rs 1,926.76 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 3,895.68 crore in the Indian equity market on 14 August 2025, provisional data showed. Stocks in Spotlight: Vodafone Idea added 3.74%. The companys consolidated basis, net loss stood at Rs 6,608.1 crore in Q1 FY26 higher than Rs 6,432.1 crore in Q1 FY25. Revenue from operations rose 4.9% YoY to Rs 11,022.5 crore from Rs 10,508.3 crore in Q1 FY25. Operationally, ARPU improved 15% YoY to Rs 177 from Rs 154 in Q1 FY25, driven by tariff revisions and customer upgrades. The 4G/5G subscriber base rose to 127.4 million versus 126.7 million last year. Alembic Pharmaceuticals rose 1.02% after the company has received final approval from the US Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) Tretinoin Cream USP, 0.025%. Numbers to Track: The yield on India's 10-year benchmark federal paper rose 0.04% to 6.444 from the previous close of 6.402. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.4175 compared with its close of 87.5900 during the previous trading session. MCX Gold futures for 3 October 2025 settlement rose 0.10% to Rs 99,941. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.01% to 97.86. The United States 10-year bond yield fell 0.46% to 4.307. In the commodities market, Brent crude for October 2025 settlement shed 6 cent or 0.09% to $65.79 a barrel. Global Markets: Markets in Asian traded in a mixed manner on Monday after U.S.-Russia summit concluded without a ceasefire. As per media reports, the U.S. President Donald Trump now seemed more aligned with Moscow on seeking a peace deal with Ukraine instead of a ceasefire first, after meeting Russian President Vladimir Putin in Alaska on Friday. The reports further state that Trump will meet Ukrainian President Volodymyr Zelenskiy and European leaders later on Monday to discuss the next steps, though actual proposals are vague as yet. US stocks were mixed on Friday as Wall Street tempered its rate-cut hopes amid economic data this week that showed higher-than-expected wholesale inflation and a rise in July retail sales. The Dow rose 0.08%, or 34.86 points, to 44,946.12. The S&P 500 slipped 0.29%, or 18.74 points, to 6,449.80; and the tech-heavy Nasdaq dipped 0.4%, or 87.693 points, to 21,622.977. The US Census Bureau data released Friday morning showed retail sales rose 0.5% in July from the prior month. Meanwhile, US consumer sentiment deteriorated in August, falling for the first time in four months as inflation expectations jumped in the longer term. The US Fed will continue to be in focus this week as central bank members travel to Jackson Hole, Wyoming, for the annual economic policy symposium.
Mint
27 minutes ago
- Mint
Nifty Auto Index rises 4% on GST cut expectations: Hero MotoCorp, Maruti lead the gains
Stock Market Today: The Nifty Auto Index gained more than 4% in the morning trades on Monday on GST cut expectations. Hero MotoCorp, Maruti lead the gains.
