RBI Deputy Governor and MPC member Michael Debabrata Patra said monetary policy must remain restrictive and maintain downward pressure on inflation while minimising the output costs of disinflation.
Sankar emphasized the increasing importance of cyber security as banks become more reliant on technology. He urged a closer examination of cyber security measures, recognizing that breaches are not a matter of if, but when. Sankar emphasized the need to stay informed about global developments in cyber security.
RBI deputy governor M Rajeshwar Rao highlighted the advantageous position of large finance companies over banks, citing lighter regulation. NBFCs in India, unlike global trends, expanded by 10% in 2022, controlling a significant loan share. Concerns include peer-to-peer lending risks and overdependence on bank funding, urging NBFCs to emerge from banking sector shadows.
Deputy Governor Swaminathan J of the Reserve Bank emphasized the imperative to bolster governance and technological infrastructure in urban cooperative banks (UCBs) during discussions with south-based UCBs. He stressed on the crucial role UCBs play in advancing financial inclusion and stressed the necessity of proactive measures to ensure the resilience of the UCB sector.
RBI deputy governor Rao outlined specific concerns and expectations for financial institutions deploying AI in their processes and decision-making. These include biases, robustness issues, data privacy, cybersecurity, consumer protection, and maintaining financial stability. He added that AI inherits biases and errors from its training data, making regular fairness audits essential.
Speaking at at the 106th annual conference of Indian Economic Association in Delhi last week, Rao said that despite the transformative potential of GenAI, there are potential impacts on productivity, jobs, and income distribution.
Reserve Bank Deputy Governor M Rajeshwar Rao has advocated the establishment of a specialized institute aimed at educating regulators from various sectors. Rao emphasized that effective regulation necessitates a forward-looking approach and meticulous drafting, akin to the finesse of an art form. He underscored the importance of concentrating efforts on training and enhancing the skills of regulatory professionals.
M Rajeshwar Rao was appointed as the RBI Deputy Governor in October 2020 for a period of three years Rao was elevated as the RBI executive director in November 2016. An economics graduate and a Master of Business Administration from the University of Cochin, Rao joined the central bank in 1984.
The number of retail central bank digital currency (CBDC) transactions being carried out per day at a system-wide level is currently at 18,000, with the figure expected to rise dramatically in coming months, a government official said.
While speaking at the Global Fintech Fest 2023, RBI Deputy Governor believed the increased efficiency is driven by three factors: Digitisation of information, more direct interface between buyers and sellers and democratisation of fast communication channels. He was also of the viewpoint that the traditional finance players have come to acknowledge fintechs in functional roles. Read here:
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