RBI Deputy Governor Flags Systemic Risk From Financial Institutions' Reliance on Common Tech Providers

RBI Deputy Governor flags systemic risk from financial institutions' reliance on common tech providers

Reserve Bank of India (RBI) Deputy Governor Rohit Jain has warned that financial institutions' increasing reliance on a small number of common technology providers, including cloud and AI model providers, could create a new source of systemic risk. He highlighted 'speed, concentration and opacity' as key risks, noting that a disruption at one provider could rapidly spread across multiple institutions, amplifying existing financial risks.

RBI Sees Common Technology Providers as Financial Stability Risk

RBI flags tech concentration risks, warns of disruptions

India Business News: MUMBAI: RBI deputy governor Rohit Jain flagged concentration risk among banks as most of them become dependent on a few cloud, technology and model pr.

Use of AI in finance could amplify existing risks, says RBI DG Rohit Jain

Jain argued that AI cannot rule out existing risks, adding that, operational failures can still disrupt financial services

Speed, concentration, opacity remain concerns as emerging technologies get deeply embedded in finance: RBI Dy Guv Rohit Jain

Says the objective should not merely be to make finance faster or smarter, but to ensure that technological progress makes finance more useful, resilient and responsive to those it serves

RBI Flags Speed, Concentration, Opacity as Key Risks as AI Use Grows in Finance

Get latest articles and stories on Business at LatestLY. The growing use of artificial intelligence and other emerging technologies in finance could amplify risks related to the speed of automated decisions, concentration among technology providers and lack of transparency in advanced models, Reserve Bank of India (RBI) Deputy Governor Rohit Jain said on Wednesday. Business News | RBI Flags Speed, Concentration, Opacity as Key Risks as AI Use Gr…