Overview

• Rao said maintaining customer trust is the biggest challenge and responsibility as credit expands through algorithms and digital interfaces.
• He called for AI-based early warning systems that deliver dynamic risk scoring and real-time default probability tracking.
• He said these tools can protect lenders’ balance sheets while giving borrowers a chance to course-correct.
• He highlighted credit gaps, noting only about 25% of adults have formal access to institutional credit and MSMEs’ needs are only partly met.
• The remarks were delivered at CNBC-TV18’s Banking Transformation Summit on Sept. 16 and were posted by the RBI on its website on Monday.