RBI Officials Highlight Need for Agile Regulation Amid Rapid Digitalisation Risks

Reserve Bank of India Deputy Governors Shirish Chandra Murmu and Swaminathan J highlighted the benefits of digitalisation in financial services, including improved efficiency, transparency, and access. However, they warned it introduces new risks such as systemic vulnerabilities, fragmented regulatory oversight, and compressed response times. They emphasized the need for agile, risk-based regulation that balances innovation with operational resilience, enhanced supervision of third-party dependencies, and proactive detection to safeguard financial stability amid rapid technological change.