SBI Chairman: AI Banking for Rural India, SMEs & Farmers

At FIBAC 2026, SBI chairman CS Setty advocated for the next phase of AI-driven banking to primarily serve rural India, small businesses, and farmers. He emphasized that AI should expand credit access beyond traditional retail customers with established financial histories.

Expanding Credit Access with AI

Setty highlighted artificial intelligence’s significant potential to improve risk assessment and overall productivity for these underserved segments. AI can facilitate better decision-making, particularly at the farm level, by providing data-driven insights.

• Data-driven risk assessments for enhanced credit access.
• Utilization of digital records to streamline processes.
• Leveraging satellite imagery for effective portfolio management.

While such technological adoption is already underway in farm lending, the larger challenge lies in scaling these AI applications. The objective is to move beyond initial pilot projects towards widespread integration across the entire banking sector for broader impact.

Mitigating Risks in AI Adoption

Setty also issued a caution regarding the increasing integration of AI within banking operations. As banks embrace more AI, they must simultaneously strengthen several critical areas to manage associated risks effectively.

• Bolstering cyber defenses against new threats and vulnerabilities.
• Reinforcing robust governance frameworks for ethical and secure AI use.
• Ensuring comprehensive human oversight of AI systems to maintain control.

This strategic shift aims to ensure that technological advancements in banking contribute meaningfully to economic inclusivity. It focuses on empowering segments traditionally overlooked by conventional credit models, fostering broader financial access.