New Delhi, April 24: Indian Finance Minister Nirmala Sitharaman stated on Friday that banks in India are prepared to tackle challenges associated with new technologies. However, she expressed concerns regarding the risks linked to a new artificial intelligence (AI) model known as Mythos AI.
In a media interaction, she highlighted that India is closely monitoring the potential risks associated with Anthropic’s Mythos AI model, which has garnered global attention due to its advanced capabilities.
The Finance Minister noted that the Ministry of Electronics and Information Technology (MeitY) is collaborating with governments and institutions from other countries to understand these risks and assess their impact on the banking system.
She emphasized that while Indian banks are in a strong position, they need to remain vigilant due to the rapidly evolving AI technology.
Sitharaman indicated that existing regulations and security frameworks may need updates to effectively address new and complex technological challenges.
She also urged banks to collaborate on this issue. Her statement came a day after she discussed the ‘unprecedented’ threats posed by Mythos AI.
The Indian Banks’ Association will lead discussions among banks to strengthen the sector’s preparedness.
Earlier this month, Sitharaman mentioned that India’s robust economic position and substantial foreign exchange reserves provide the Reserve Bank of India (RBI) with greater flexibility in policy decisions.
On April 6, during an event at the National Institute of Public Finance and Policy (NIPFP), she stated that India has the capacity to continue government spending (capex), reduce interest rates for the RBI, and assist sectors in need. This reflects a decade of financial discipline.
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