India central bank head says AI can approve loans humans would have turned down, says the technology is, 'a capability to be responsibly harnessed and not merely as a risk to be contained'
THE SO WHAT
When India's central bank endorses AI for loan approvals — while banning "the model decided" as an excuse — it's setting a template for high-stakes algorithmic accountability. Banks and fintechs should assume regulators will expect both uplift in inclusion and human-legible reasoning, and start logging decision traces accordingly.
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