When the algorithm decides: Why India’s banks cannot afford a governance gap
By Vijay Vijayasankar, Global Agentic AI Officer, Genpact
Earlier this year, a small textile exporter in Tiruppur found his current account frozen without prior notice or human review. An automated fraud detection system had flagged an unusual pattern in his transaction history. The activity was a seasonal spike in outward remittances. It took eleven days, three branch visits, and a formal complaint to restore access. His working capital facility lapsed in the interim.
This is not an isolated incident. As Indian financial institutions accelerate their AI deployment across lending, fraud detection, compliance monitoring, and customer servicing, the gap between what these systems can execute and what governance structures can oversee is widening. This gap can cost frozen accounts, wrongful rejections, regulatory violations, and broken customer relationships.
From Productivity Tool to Operational Infrastructure
The scale of AI deployment in Indian banking today is striking. NBFC underwriting engines process thousands of loan...
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