Economics · Banking Technology and Ethics

Which of the following statements accurately represent the challenges and infrastructural realities of modern banking technology? Statement 1: AI in retail banking carries the risk of 'Algorithmic Bias' where models inadvertently discriminate based on demographic parameters. Statement 2: Explainable AI (XAI) aims to make complex Machine Learning decision-making transparent to humans. Statement 3: Customer data handling must strictly comply with the Digital Personal Data Protection (DPDP) Act, 2023. Statement 4: Cloud Computing provides scalable infrastructure for processing large-scale banking datasets. Statement 5: Indian banks are legally required to store physical data backups on floppy disks at local police stations. Statement 6: Cybersecurity is critical as attackers employ AI tools to execute sophisticated phishing and exploit vulnerabilities. Statement 7: Physical bank branches have legally disappeared in India, with all operations shifted to Virtual Reality. Select the correct option: