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RBI Shortlists 7 Global Consultancy Firms to Use AI, ML to Improve Regulatory Supervision

In its bid to extensively use advanced analytics, artificial intelligence and machine learning to analyse database and improve regulatory supervision over banks and NBFCs, the Reserve Bank of India (RBI) is mulling over to hire external experts.

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More About this Development:

The central bank 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.

For generating supervisory inputs, RBI, in September 2022, invited expressions of interest (EoI) for engaging consultants for use of advanced analytics, artificial intelligence and machine learning. RBI has shortlisted seven applicants for participating in the request for proposal process (RFP) for the selection of consultant(s).

Who Are these 7 Companies:

The seven firms shortlisted by RBI are: Accenture Solutions Private Limited, Boston Consulting Group (India) Pvt Ltd, Deloitte Touche Tohmatsu India LLP, Ernst and Young LLP, KPMG Assurance and Consulting Services LLP, McKinsey and Company, and Pricewaterhouse Coopers Pvt Ltd.

Need of This: Its Objective:

The central bank is already using AI and ML in supervisory processes. However, it aims to ensure that the benefits of advanced analytics can accrue to the central bank’s Department of Supervision. The Department of Supervision has been developing and using linear and a few machine-learnt models for supervisory examinations.

With the objective of assessing financial soundness, solvency, asset quality, governance framework, liquidity, and operational viability to protect depositors’ interests and financial stability, RBI undertakes supervision over banks, urban cooperative banks, NBFCs, payment banks, small finance banks, local area banks, credit information companies and select all Indian financial institutions.

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