Name: Richa Agarwal , Seema Sharma
Country: India

Year: 2025
Volume: Volume-12, Issue-1 (Jan-June)
Page Number: 244-253
DOI: https://doi.org/10.5281/zenodo.21868490

ABSTRACT
Artificial Intelligence (AI) has shifted from an operational luxury to a core pillar of survival in the Indian banking landscape. Driven by the Reserve Bank of India (RBI) framework for responsible AI adoption and the legislative mandates of the Digital Personal Data Protection (DPDP) Act, 2023, commercial banks and Non-Banking Financial Companies (NBFCs) are aggressively deploying Large Language Models (LLMs), machine learning algorithms, and real-time data pipelines. This paper analyzes how financial institutions in India utilize AI to enhance customer experience (CX) and Customer Satisfaction (CSAT). We examine the technical architectures driving this shift, measure financial outperformance, evaluate regulatory guardrails, model customer churn mitigation mathematically, and outline a strategic roadmap for next-generation implementation.