# RBI guidance on financial technology and risk management

> Live situation record from CLSTR: https://clstr.news/situations/rbi-guidance-on-financial-technology-and-risk-management
> Updated: 2026-10-02T15:00:04.000Z. Sources: 12. Developments: 2.

Reserve Bank of India (RBI) officials have emphasized the importance of technological integration and risk management to maintain financial stability. Initially, Deputy Governor S C Murmu urged lenders to utilize artificial intelligence (AI) and machine learning (ML) to detect early signs of borrower stress, noting that “growth must never come at the cost of underwriting standards” as credit growth accelerates in the non-banking financial sector.

Subsequently, RBI Governor Sanjay Malhotra expanded the focus on systemic risks, expressing caution regarding private cryptocurrencies due to concerns over monetary sovereignty. He also identified a potential slowdown in global AI investment cycles as a risk factor for market volatility, though he suggested such corrections might redirect capital toward India’s resilient banking sector. Malhotra warned that prolonged financial stability can lead to excessive leverage, necessitating continuous vigilance.

## Timeline

### 2026-10-02: RBI Governor Sanjay Malhotra urges caution on crypto and AI risks

RBI Governor Sanjay Malhotra maintains a cautious stance on cryptocurrencies while highlighting CBDCs as a solution for cross-border payments and warning of risks from AI investment volatility.

11 sources. https://clstr.news/cluster/sebi-revamps-document-verification-system-for-regulatory-notices

### 2026-09-03: RBI Deputy Governor urges lenders to use AI and ML for stress detection

RBI Deputy Governor S C Murmu has called on lenders to utilize AI and machine learning to detect early signs of borrower stress and manage asset-quality risks amid rising credit growth.

3 sources. https://clstr.news/cluster/rbi-deputy-governor-urges-lenders-to-use-ai-and-ml-for-stress-detection

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Cite as: RBI guidance on financial technology and risk management. CLSTR, https://clstr.news/situations/rbi-guidance-on-financial-technology-and-risk-management