Algorithms must explain credit decisions to customers: RBI Governor Murmu

The Reserve Bank of India has mandated that lenders provide clear explanations when rejecting credit applications, underscoring the importance of algorithmic transparency in lending decisions. The directive aims to ensure equitable access to financial resources for all customers.

RBI Governor Murmu stressed that technology should enhance credit accessibility and customer choice rather than restrict it. Financial institutions have also been urged to prepare defenses against emerging threats from quantum computing.

The central bank emphasized that regulated entities remain fully accountable for all services offered, with technology serving to amplify rather than diminish lender accountability.