RBI Teams Up with McKinsey & Accenture for AI-based Supervision

In a significant move towards modernizing its supervisory functions, the Reserve Bank of India (RBI) has forged partnerships with esteemed consulting firms, McKinsey and Company India LLP, and Accenture Solutions Pvt Ltd India for AI-based Supervision. This strategic collaboration seeks to harness the potential of artificial intelligence (AI) and machine learning (ML) to elevate regulatory oversight over banks and non-banking financial companies (NBFCs). By embracing advanced analytics, the RBI aims to strengthen its supervisory capabilities through technology-driven insights.

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Advancing Supervision with AI and ML

Driven by its commitment to staying at the forefront of technological innovation, the RBI is proactively integrating AI, ML, and advanced analytics into its supervisory framework. This collaboration with McKinsey and Accenture underlines the central bank’s dedication to utilizing external expertise to enhance its regulatory functions. While the RBI has already ventured into AI and ML applications for supervision, its current endeavor focuses on extending the benefits of these technologies to the Department of Supervision within the central bank.

Insights for Financial Stability: AI-based Supervision

The Department of Supervision, responsible for assessing the financial stability, solvency, and governance frameworks of various entities, is poised to tap into data attributes for generating fresh and refined supervisory inputs. These insights are instrumental in ensuring depositor protection, maintaining asset quality, overseeing operational viability, and upholding overall financial stability. By embracing technology-driven methodologies, the RBI aims to align itself with the global trend of utilizing machine learning techniques, often referred to as ‘suptech’ and ‘regtech,’ for regulatory and supervisory activities. This collaboration underscores the RBI’s unwavering commitment to cultivating a robust and technologically advanced supervisory ecosystem.

Priti Palit

Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti’s expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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