Central banks view artificial intelligence (AI) as a transformative tool that can enhance their functions if implemented responsibly. However, they recognize the need for stringent regulation and oversight to avoid potential pitfalls. The Reserve Bank of India (RBI) is emphasizing financial sector stability, prompting banks to strengthen their technology teams and increase IT spending. This focus comes amid growing cybersecurity concerns and the demand for AI-led services. RBI Governor Shaktikanta Das has advised financial institutions to be mindful of the risks associated with AI, particularly in areas like loan sanctioning.