RBI Governor Shaktikanta Das emphasized the robustness of the Indian financial system, noting strong capital adequacy, low levels of non-performing assets, and healthy profitability of banks and non-banking lenders. Speaking at the Global Conference on Financial Resilience in Mumbai, Das stressed the importance of future-ready strategies and timely supervisory intervention to mitigate systemic risks. While acknowledging the past failures in global banking systems, Das highlighted the proactive regulatory measures taken by the RBI to prevent crises, such as the intervention in the Yes Bank crisis. He also emphasized the need for continuous vigilance and adoption of technological advancements in fraud prevention and operational efficiencies.
Governor Das highlighted the various origins of financial crises, such as internal deficiencies within organizations, technological disruptions, and undetected fraud. He underscored the importance of supervisors enhancing their methods and aligning them with evolving stress scenarios. Das outlined RBI’s recent supervisory initiatives, including the moderation of unsecured lending and reduction in bank exposure to Non-Banking Financial Companies (NBFCs) to preempt future risks. He emphasized the collaborative efforts of all stakeholders in India, including the Reserve Bank, banks, NBFCs, and the government, that have strengthened the domestic financial system.
Governor Das stressed the pivotal role of AI and machine learning in fraud prevention and operational efficiencies within financial institutions. He highlighted the potential of these technologies to enhance predictive analytics, improve fraud detection, and automate routine tasks, thereby freeing up resources for more strategic activities. Looking ahead, Das outlined RBI’s commitment to regulatory stability, focusing on a thematic and activity-based supervisory approach. He also expressed RBI’s ambition to position itself as a model for emerging economies by advocating for a holistic, customer-centric regulatory framework as the institution approaches its centenary.
Governor Das reiterated RBI’s ongoing initiatives, including the establishment of a unified supervision department and the engagement of senior officers with bank boards to reinforce oversight priorities. He emphasized RBI’s vision for its centenary, aiming to set a benchmark for the Global South through a customer-centric regulatory framework. These initiatives highlight RBI’s dedication to fostering financial resilience and upholding high standards of governance in the ever-evolving global financial landscape.
