In a surprise move this week, the Ministry of Electronics and Information Technology (MeitY) and the Reserve Bank of India (RBI) issued a joint advisory. The target? Claude Mythos—the advanced, high-context AI model from Anthropic that promised to revolutionize credit scoring and fraud detection.

While banks in the USA and EU have embraced the model, India is pulling the emergency brake. Watch the report below for a deep dive into the cyber security threats currently keeping Indian regulators on high alert.

1. The "Data Sovereignty" Red Line

2. Algorithmic Bias in Credit Scoring

Indian banks began using Mythos AI to determine loan eligibility for the "unbanked" population. However, the government found a disturbing trend: the AI was subconsciously favoring urban profiles over rural applicants due to the Western-centric nature of its initial training sets.

The Warning: RBI has stated that any bank using Mythos AI must provide a "Human-in-the-loop" audit for every rejected loan application to prevent systemic discrimination.

3. The "Deep-Vishing" Security Risk

4. Black-Box Accountability

In the event of a financial crash or a massive erroneous transfer, who is liable? Anthropic’s proprietary "Mythos" logic is a black box. The Indian government is insisting on Explainable AI (XAI). If a bank cannot explain *why* an AI made a specific financial decision, it cannot use the model for core banking operations.

What This Means for Global Investors

This move is being watched globally. India is setting a precedent: Localization over Convenience. Anthropic may now be forced to set up dedicated, audited "Mythos Nodes" within Indian borders to satisfy regulators—a move that could cost millions but secure the massive Indian market.