Generative Artificial Intelligence (AI) could enhance banking operations in India by as much as 46%, according to a Reserve Bank of India (RBI) report. As per news agency ANI, the central bank said AI could help financial institutions better understand customers, operate more efficiently, and deliver personalised services at scale.“GenAI is poised to improve banking operations in India by up to 46 per cent,” the RBI noted in its assessment, highlighting that AI adoption in financial services is accelerating to meet varied needs such as enhancing customer experience, improving employee productivity, increasing revenue, cutting costs, ensuring compliance, and driving innovation.As per the report, Generative AI is emerging as a game-changer, using advanced analytics to interpret customer behaviour, strengthen risk management, and streamline expenses. It also pointed to AI-powered alternative credit scoring models that are widening access to credit for people underserved by conventional banking systems.In India, where millions remain outside the formal banking network, AI can assess creditworthiness using non-traditional data sources such as utility payments, mobile usage, GST records, and e-commerce transactions. The RBI observed that this technology can help integrate “thin-file” or “new-to-credit” customers into the system.The report also highlighted the growing role of AI chatbots, which are transforming customer service by handling routine queries round the clock, resolving issues faster, and freeing up human staff for more complex cases.On a global scale, the use of AI in financial services is expanding rapidly. The RBI estimated that the generative AI market could surpass Rs 1.02 lakh crore (about $12 billion) by 2033, with an annual growth rate of 28–34%. It added that, when applied responsibly, AI can make banking more inclusive, efficient and customer-friendly, while fuelling long-term sector growth.