RBI governor Das emphasizes financial sector innovation and customer-centric policies

Bengaluru, August 26 2024 :  In a keynote address at the Global Conference on Digital Public Infrastructure and Emerging Technologies, part of the RBI@90 initiative, Reserve Bank of India (RBI) Governor Shaktikanta Das outlined the central bank’s strategic focus on bolstering the financial sector through innovative policies and platforms. Das highlighted the importance of enhancing the sector’s strength, agility, and customer orientation amid rapid technological advancements. Das underscored the transformative impact of Digital Public Infrastructure (DPI) and emerging technologies on the global economy. DPI refers to fundamental technology systems established primarily by the public sector that are accessible to users and developers alike. He noted that India’s progress in DPI has significantly accelerated financial inclusion, achieving milestones in less than a decade that might have otherwise taken several decades.

The Governor emphasized the ongoing technological evolution within traditional banking, predicting that this transformation will intensify in the coming years. As part of this evolution, Das introduced the upcoming Unified Lending Interface (ULI) platform, which aims to streamline credit processes by integrating digital information flow. The ULI will facilitate the seamless transmission of data, including land records from various states, to lenders. Das revealed that based on positive outcomes from a recent pilot project, the RBI plans a nationwide launch of the ULI in the near future. Additionally, Das pointed out the potential of the Unified Payments Interface (UPI) system to serve as a more cost-effective and efficient alternative for cross-border remittances. The UPI’s evolution could significantly enhance the speed and affordability of international financial transactions. Governor Das also addressed the emerging risks associated with Artificial Intelligence (AI), urging financial institutions to remain vigilant. He stressed the importance of managing these risks as AI becomes increasingly integrated into financial systems.

Overall, the RBI’s emphasis on policy innovation, digital infrastructure, and customer-focused solutions reflects its commitment to strengthening India’s financial sector in an era of rapid technological change. The introduction of the ULI and ongoing advancements in DPI are expected to play crucial roles in shaping the future of financial services, making them more accessible and efficient for users across the country.