RBI Shortlists Seven Global Consultancy Firms To Use AI, ML For Supervisory Functions: Report On the data collection side, AI and ML technologies are used for real-time data reporting, effective data management and dissemination
By Teena Jose
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The Reserve Bank of India (RBI) has shortlisted seven global consultancy firms, including Pricewaterhouse Coopers, McKinsey and Boston Consulting Group (India), to use artificial intelligence and machine learning for supervisory functions, according to a PTI report.
The other firms are Accenture Solutions Private Limited, Deloitte Touche Tohmatsu India LLP, Ernst and Young LLP, KPMG Assurance and Consulting Services LLP.
The RBI is looking to extensively use advanced analytics, artificial intelligence and machine learning to analyse its huge database and improve regulatory supervision over banks and NBFCs. For this purpose, the central bank plans to hire external experts, as per the report.
An RBI document, mentioned in the report, stated that based on the scrutiny/evaluation set out in the EOI document, the central bank has shortlisted seven applicants for participating in the request for proposal process (RFP) for the selection of consultant(s).
While the RBI is already using AI and ML in supervisory processes, it now intends to upscale it to ensure that the benefits of advanced analytics can accrue to the Department of Supervision in the central bank. The Department of Supervision has been developing and using linear and a few machine-learnt models for supervisory examinations.
The supervisory jurisdiction of the RBI extends over banks, urban cooperative banks, NBFCs, payment banks, small finance banks, local area banks, credit information companies and selects all Indian financial institutions. It undertakes supervision of these entities with the objective of assessing their financial soundness, solvency, asset quality, governance framework, liquidity, and operational viability to protect depositors' interests and financial stability, according to the report.
On the data collection side, AI and ML technologies are used for real-time data reporting, effective data management and dissemination.
