GenAI: A Technological Catalyst for Reshaping India’s Banking Sector

A massive digital disruption is happening in the Indian banking industry, and an enormous transformation is happening due to the integration of advanced digital technologies. Generative Artificial Intelligence (GenAI) is playing a transformative role. This review article is critically poised at GenAI as a “technological disruptor” to reconfigure the morphologies 3 of the operational, strategic, and customer dimensions of Indian banking. In contrast to standard AI, GenAI can generate synthetic data, offer an intelligent user experience, and provide highly personalized solutions, thereby opening new doors for innovation in fraud detection, credit scoring, regulatory compliance, risk rating, and customer management. Synthesizing existing literature and recent industry developments, this study investigates how Indian banks are adopting GenAI to enhance efficacy, & promote financial inclusion. The study further analyses the opportunities and challenges for deploying GenAI – including questions of data governance, ethical frameworks, algorithmic transparency, or the reskilling of the bank labour force. The review also summaries highlight visible use cases across comparators, identifying potential knowledge gaps that may inform future studies. The results suggest that the adoption of GenAI in India is early. Still, with its dynamic growth, GenAI can enable faster digital transformation, enhance competitiveness, and reinvent customer engagement paradigms. Finally, this paper delves into how GenAI will not merely gave revolutionary edge existing banking processes but fundamentally reshape the structure and resilience of India’s banking ecosystem in the coming decade