RBI Scrutiny on Banks’ Compliance, Outsourcing and AI
Why in the news
As finance turns faster and technology-driven, RBI indicated closer supervision of banks’ digital operations.
Three expectations
| Area | Expectation |
|---|---|
| Compliance | Year-round discipline and data governance, not only at quarter-end or audits; quick explanation and correction of anomalies signals control maturity |
| Third parties | Cloud, fintech and vendor dependence needs clear incident responsibility and contracts allowing audit, access and resilience |
| AI | Use in underwriting, fraud detection and risk management will face questions on model risk, explainability, fairness and bias |
Key facts
- Position: accountability cannot be outsourced.
- Third-party risk management is core risk management, notably for cross-border operations.
Exam angle
- Regulator: RBI.
- Themes: continuous compliance, outsourcing, AI oversight.