Risk Compliance in Indian Banking: Leveraging Artificial Intelligence for Fraud Detection

Abstract

The Indian banking sector is increasingly adopting Artificial Intelligence (AI) to enhance risk compliance and fraud detection. This paper explores how AI-based solutions are transforming the regulatory compliance landscape in Indian banks. By using machine learning models such as Support Vector Machines (SVM) and Decision Trees, banks can detect fraudulent activities, money laundering, and suspicious transactions in real-time. The study evaluates the effectiveness of AI-driven systems in reducing false positives while ensuring compliance with the Reserve Bank of India (RBI) guidelines. Additionally, the paper discusses the implementation challenges of these technologies, including data privacy concerns and regulatory compliance.