• Simran Dev Arora ,
• Prof Dr. Devendra Arora

Abstract This paper delves into the transformative impact of Artificial Intelligence (AI) on the landscape of modern financial risk management within India. It meticulously examines the multifaceted applications of AI, showcasing its efficacy in critical areas such as the proactive detection and prevention of fraudulent activities, the sophisticated assessment and management of credit risk, and the automation of regulatory compliance processes, thereby enhancing operational efficiency and minimizing the potential for non-adherence. Furthermore, this study provides a comprehensive and up-to-date overview of the Reserve Bank of India's (RBI) evolving guidelines and regulatory framework governing securitization, with a specific focus on its application within the dynamic Indian housing finance sector. This analysis incorporates the most recent directives and pronouncements issued by the RBI up to the fiscal year 2024-2025, offering a current perspective on the regulatory environment. By synthesizing the inherent benefits and potential risks associated with securitization for investors across different risk tranches, this paper draws insightful parallels with earlier research findings while critically contextualizing them within the rapidly evolving regulatory landscape and the continuous advancements in financial technology. The study underscores the increasing synergy between AI-driven risk management solutions and the regulatory oversight of securitization in shaping a more resilient and transparent financial ecosystem in India.

Artificial Intelligence, Financial Risk Management, Reserve Bank of India (RBI), Securitization, Housing Finance, Regulatory Guidelines, Credit Risk, Fraud Detection, RegTech, Financial Innovation, Risk Mitigation, Regulatory Compliance, Fintech.

"Role of AI in Financial Risk Management and RBI Guidelines on Securitization in the Indian Housing Finance Sector ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 4, page no.l515-l527, April-2025, Available :http://www.jetir.org/papers/JETIR2504B65.pdf

"Role of AI in Financial Risk Management and RBI Guidelines on Securitization in the Indian Housing Finance Sector ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 4, page no. ppl515-l527, April-2025, Available at : http://www.jetir.org/papers/JETIR2504B65.pdf