Mumbai, August 25, 2026: State Bank of India (SBI) is set to significantly expand the use of artificial intelligence (AI) in cheque processing, with the bank planning to increase the threshold for fully automated processing from ₹10,000 to ₹1 lakh.
The move is expected to bring more than 50–55% of SBI’s cheque volumes, by number, under automated processing, strengthening the bank’s broader efforts to deploy AI across its operations.
SBI currently uses AI-based models to process cheques valued at up to ₹10,000. These transactions account for around 25% of the bank’s overall cheque volumes. The AI system uses vision-based models to read cheque images, verify mandatory details and check compliance requirements before processing them through a straight-through processing system.
As the threshold is raised to ₹1 lakh, a substantially larger share of cheque transactions could be processed without routine manual intervention. The expansion is aimed at improving operational efficiency, reducing processing costs and allowing employees to focus more on customer-facing and higher-value activities.
AI Adoption Across Banking Operations
Cheque processing is one of several areas where SBI is increasing its use of artificial intelligence. The bank is also applying AI across credit underwriting, fraud risk management, customer service and portfolio management.
In the MSME lending segment, SBI used AI-based systems to underwrite nearly ₹1 trillion in loans during FY26, covering loans of up to ₹5 crore for both new and existing customers. The technology uses multiple data points, including GST information, credit bureau data and account-related information, to support credit assessment.
The bank has also been exploring AI-led early warning systems to identify potential risks in loan portfolios and improve the speed of decision-making.
Focus on Efficiency and Customer Service
SBI’s wider AI strategy is aimed at reducing the amount of time employees spend on repetitive and high-volume operational activities. By automating routine processes, the bank expects to improve employee productivity while handling a larger customer base without a proportionate increase in workforce requirements.
The bank is also increasing investments in AI platforms and infrastructure at the enterprise level, with the objective of creating systems that can support multiple banking functions and deliver efficiency gains over the longer term.
The expansion of AI-based cheque processing represents another step in SBI’s broader digital transformation strategy, as the lender looks to combine automation with human oversight across critical banking operations.
