Overview
The fourth CNBC‑TV18 Banking Transformation Summit, presented by Nucleus Software, convened senior leaders from India’s banks, NBFCs and fintech firms under the theme “Scaling Bharat: Powering Progress with Responsible AI”. The summit underscored that artificial intelligence is no longer a speculative tool for the sector; the focus has shifted to articulating a responsible, scalable AI‑driven transformation for the Indian financial ecosystem.
Regulatory Perspective
RBI Deputy Governor Shirish Chandra Murmu delivered the keynote and outlined a four‑tier framework for responsible AI deployment. The framework begins with analytical intelligence derived from data and models, adds human experience and judgment, incorporates governance intelligence at the board and senior‑management level, and culminates in collective intelligence that emerges across the banking system.
Deposit Growth Challenges and Funding Strategies
A banking panel featuring Ashwini Kumar Tewari (MD, State Bank of India), Rajiv Anand (MD & CEO, IndusInd Bank), Ashok Chandra (MD & CEO, Punjab National Bank) and Sanjay Agarwal (MD & CEO, AU Small Finance Bank) discussed the slowdown in deposit growth. Tewari suggested innovative funding avenues such as infrastructure bonds, securitisation of assets and expanded transaction‑banking services. Chandra emphasized that public‑sector banks must adopt wealth‑management and relationship‑management models that have long been the domain of private‑sector banks.
Strategic Outlook and Capital Considerations
In a fireside chat, Keki Mistry, Non‑Executive Director of HDFC Bank, expressed confidence that the sector will grow, citing favourable demographics. Former Department of Financial Services Secretary M. Nagaraju highlighted strong MSME and agricultural lending trends and advocated raising the foreign‑direct‑investment (FDI) ceiling for public‑sector banks, a move he said would unlock additional capital for credit expansion and improve bank valuations.
Intelligent Banking Stack
Vishnu R. Dusad, Co‑founder and Managing Director of Nucleus Software, traced the evolution of banking technology through three waves: the creation of systems of record, the expansion of access via the internet, and the current wave of decision‑making automation. He cautioned that AI‑driven underwriting demands heightened governance because erroneous credit denials have real‑world consequences.
Fintech Perspectives on UPI and AI
A dedicated fintech panel comprising Anirban Mukherjee (CEO, PayU), Akash Sinha (Co‑Founder & CEO, Cashfree Payments), Miten Sampat (Interim CEO, CRED), Sohini Rajola (Executive Director, NPCI) and Ranvir Singh (Chairman & CEO, Kissht) discussed the future of UPI, the transformative potential of AI in payments, and the upcoming introduction of merchant‑discount‑rate (MDR) charges.
NBFC Concerns Over RBI Draft Circular
The evening concluded with an NBFC panel featuring Abhishek Dwivedi (MD & CEO, Navi Finserv), Sudipta Roy (MD & CEO, L&T Finance), Abhimanyu Munjal (MD & CEO, Hero FinCorp) and Jairam Sridharan (MD & CEO, Piramal Finance). The panel warned that the RBI’s draft circular on revolving credit, if implemented, could curtail approximately ₹2 lakh crore of credit supply from NBFCs, potentially stalling growth in the lending segment.
Trust and Governance as Pillars of AI Adoption
Across all sessions, speakers converged on the view that technology alone will not define the next phase of banking transformation. Trust, built through robust governance frameworks, will determine customer acceptance of AI‑enabled services, while collaboration among regulators, banks, fintechs and technology providers will shape the scale and impact of AI on India’s financial inclusion agenda.
---