# FiMI Banking: A Sovereign Model for Indian Retail Banking

arXiv: https://arxiv.org/abs/2609.03960 · HTML: https://mlsanity.com/paper/2609.03960/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Placed in Reward modeling and RLHF, one of 10 directions in LLM alignment / RLHF / preference optimisation.
- Builds on 29 of its 40 references that are in the map.
- First posted on arXiv 3 Sep 2026.

## Placed in

- LLM alignment / RLHF / preference optimisation / [Reward modeling and RLHF](https://mlsanity.com/alignment/reward-modeling-and-rlhf/)

## Builds on (most cited first, 29 of 29)

- [Training language models to follow instructions with human feedback](https://mlsanity.com/paper/2203.02155/) (2022)
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- [Judging LLM-as-a-Judge with MT-Bench and Chatbot Arena](https://mlsanity.com/paper/2306.05685/) (2023)
- [Direct Preference Optimization: Your Language Model is Secretly a Reward Model](https://mlsanity.com/paper/2305.18290/) (2023)
- [Efficient Memory Management for Large Language Model Serving with PagedAttention](https://mlsanity.com/paper/2309.06180/) (2023)
- [Deep reinforcement learning from human preferences](https://mlsanity.com/paper/1706.03741/) (2017)
- [GPQA: A Graduate-Level Google-Proof Q&A Benchmark](https://mlsanity.com/paper/2311.12022/) (2023)
- [HybridFlow: A Flexible and Efficient RLHF Framework](https://mlsanity.com/paper/2409.19256/) (2024)
- [Phi-3 Technical Report: A Highly Capable Language Model Locally on Your Phone](https://mlsanity.com/paper/2404.14219/) (2024)
- [MMLU-Pro: A More Robust and Challenging Multi-Task Language Understanding Benchmark](https://mlsanity.com/paper/2406.01574/) (2024)
- [τ-bench: A Benchmark for Tool-Agent-User Interaction in Real-World Domains](https://mlsanity.com/paper/2406.12045/) (2024)
- [Instruction-Following Evaluation for Large Language Models](https://mlsanity.com/paper/2311.07911/) (2023)
- [τ2-Bench: Evaluating Conversational Agents in a Dual-Control Environment](https://mlsanity.com/paper/2506.07982/) (2025)
- [Statistical Rejection Sampling Improves Preference Optimization](https://mlsanity.com/paper/2309.06657/) (2023)
- [Disentangling Length from Quality in Direct Preference Optimization](https://mlsanity.com/paper/2403.19159/) (2024)
- [Preference Fine-Tuning of LLMs Should Leverage Suboptimal, On-Policy Data](https://mlsanity.com/paper/2404.14367/) (2024)
- [APIGen-MT: Agentic Pipeline for Multi-Turn Data Generation via Simulated Agent-Human Interplay](https://mlsanity.com/paper/2504.03601/) (2025)
- [XuanYuan 2.0: A Large Chinese Financial Chat Model with Hundreds of Billions Parameters](https://mlsanity.com/paper/2305.12002/) (2023)
- [DISC-FinLLM: A Chinese Financial Large Language Model based on Multiple Experts Fine-tuning](https://mlsanity.com/paper/2310.15205/) (2023)
- [The MiniMax-M2 Series: Mini Activations Unleashing Max Real-World Intelligence](https://mlsanity.com/paper/2605.26494/) (2026)
- [RS-DPO: A Hybrid Rejection Sampling and Direct Preference Optimization Method for Alignment of Large Language Models](https://mlsanity.com/paper/2402.10038/) (2024)
- [Anchored Preference Optimization and Contrastive Revisions: Addressing Underspecification in Alignment](https://mlsanity.com/paper/2408.06266/) (2024)
- [SPASM: Stable Persona-driven Agent Simulation for Multi-turn Dialogue Generation](https://mlsanity.com/paper/2604.09212/) (2026)
- [Aligning CodeLLMs with Direct Preference Optimization](https://mlsanity.com/paper/2410.18585/) (2024)
- [State-Grounded Multi-Agent Synthetic Data Generation for Tool-Augmented LLMs](https://mlsanity.com/paper/2606.16307/) (2026)
- [Evoflux: Inference-Time Evolution of Executable Tool Workflows for Compact Agents](https://mlsanity.com/paper/2606.12674/) (2026)
- [FiMI: A Domain-Specific Language Model for Indian Finance Ecosystem](https://mlsanity.com/paper/2602.05794/) (2026)
- [GenesisFunc: Multi-Agent Data Generation for Accurate and Generalizable Function-Calling](https://mlsanity.com/paper/2605.28835/) (2026)

## Abstract (arXiv)

Banks need conversational systems that can answer product questions, assist customers with account-related requests, and operate safely within strict operational and regulatory constraints. General-purpose language models do not reliably meet these requirements. They fall short when a task requires grounded information, correct tool use, or cautious handling of bank-specific sensitive situations. We introduce FiMI Banking, a controlled Indian retail-banking setting. We build it from vetted banking documents, structured ground truth, synthetic customer backgrounds, and banking tools. We evaluate two post-training approaches: preference optimization for response-level behavior, and reinforcement learning with verifiable rewards for multi-turn tool-use tasks. Preference optimization improves safe behavior substantially: out-of-scope refusal rises from 52% to 80%. Reinforcement learning improves edge-case performance from 0.509 to 0.718 and order-sensitive task performance from 0.590 to 0.679, while using 29% fewer generated tokens. These results show that preference optimization and verifiable-reward reinforcement learning address complementary requirements for reliable banking agents.