15-May-2026
Banking
 
India plans central back office for rural banks amid rising AI risks
15-May-2026

Amid threats from the latest AI models, the government is exploring a centralised back office, for Regional Rural Banks (RRBs) to strengthen tech infrastructure and expand their digital services. The National Bank for Agriculture and Rural Development may lead the initiative, focusing on shared digital platforms, analytics and enhanced cybersecurity capabilities, said people familiar with the developments. "These discussions are part of the initiative to further strengthen RRBs and ensure that the tech infrastructure is secure," said an official, adding that the new structure will also look at common procurement operations and knowledge exchange with sponsor banks. All RRBs have state-run banks as their sponsor banks and hold up to a 35% share.

News Source:- https://economictimes.indiatimes.com/industry/banking/finance/banking/india-plans-central-back-office-for-rural-banks-amid-rising-ai-risks/articleshow/131101644.cms