Mumbai, Aug. 19 -- Banks must anticipate and contain cyber fraud and other emerging risks, while protecting consumers and preserving market integrity, Reserve Bank of India deputy governor Shirish Chandra Murmu said on Wednesday.

Speaking at the fourth CNBC-TV18 Banking Transformation Summit in Mumbai, Murmu urged lenders to "test these systems adversely before deployment, and again at regular intervals thereafter."

He said five principles should guide banking through the artificial intelligence era, including clear human accountability for automated decisions and an inventory of every AI system used by a bank, including those embedded in vendor products.

His comments follow RBI governor Sanjay Malhotra's call for banks to adopt AI mor...