RBI deputy governor Murmu calls for focus on meaningful financial inclusion

Mumbai: Reserve Bank of India deputy governor Shirish Chandra Murmu has emphasized the importance of evaluating financial inclusion based on meaningful outcomes rather than simply the number of accounts opened. Banks must adapt to technological advancements, evolving consumer behavior, and shifting business models to meet the changing needs of customers effectively, particularly with the increasing influence of artificial intelligence, Murmu stated during a speech at an event organized by a media company.

While progress has been made in financial inclusion, with the index reaching 70 in March 2026, the real economic value lies in consumers' ability to comprehend financial choices, manage their finances, and understand their rights and responsibilities. Murmu highlighted the need for deeper digital inclusion, ensuring that those who require assistance or alternative access methods are not left behind.

He noted that AI can play a crucial role in recognizing capability across various dimensions, including language, location, livelihood, gender, and channel, and using data judiciously to make financial services more accessible.

Murmu stressed the necessity for banking systems to keep pace with changing times and the need for timely upgrades in technology, processes, and oversight. He stated that institutions require individuals capable of understanding new systems, challenging models, overseeing external providers, and connecting technological change to financial and conduct outcomes. As machines handle more routine tasks, human judgment becomes indispensable in validating models, assessing outcomes, and intervening when necessary.

The deputy governor also pointed out the potential of alternative data sources, such as cash flows, GST filings, utility payments, and e-commerce records, in bringing "credit invisibles" into the formal system with the help of AI. However, he cautioned that as AI adoption increases, banks must retain the necessary judgement, capability, and alternative arrangements to intervene when systems fail or behave unpredictably.

He emphasized that while performance in familiar territory may not necessarily translate into new customer segments or changing economic conditions, a model that performs well overall can still fail a vulnerable group.

Murmu cautioned that the interconnectedness of the financial system brings efficiency gains but also poses risks. When multiple institutions rely on the same data sources or infrastructure, a single error or disruption can affect them collectively. He stressed the importance of effective challenge, limiting undue concentration, and providing credible alternatives.

Murmu concluded that the intelligence required for such a complex system cannot be amassed within a single institution; it must be pooled to ensure a robust and resilient financial ecosystem.