“RBI Governor Shaktikanta Das Talks About Digital Trends, Cryptocurrency, and UPI”
Reserve Bank of India (RBI) Governor Shaktikanta Das took the stage at the Mint BFSI Summit in Mumbai, delivering a keynote address that touched upon various aspects of the banking and financial services sector.
Reserve Bank of India (RBI) Governor Shaktikanta Das took the stage at the Mint BFSI Summit in Mumbai, delivering a keynote address that touched upon various aspects of the banking and financial services sector. Here are the key highlights from the RBI governor’s insights at the summit:
- Banking Sector Resilience: Shaktikanta Das emphasized the significant improvements in key indicators of scheduled commercial banks (SCBs) over the last four years. Capital adequacy, asset quality, and profitability have all shown positive trends, contributing to the overall strength of India’s banking sector.
- Macro-Financial Stability Post-IL&FS Crisis: The governor discussed the RBI’s focused efforts on maintaining macro-financial stability in the aftermath of the Infrastructure Leasing and Financial Services (IL&FS) crisis. The adoption of conventional and non-conventional measures, along with the flexibility provided by the Flexible Inflation Targeting (FIT) framework, played a crucial role in navigating challenges during the pandemic.
- Unified Payments Interface (UPI): Addressing concerns about UPI, Shaktikanta Das dismissed the notion of it being a monopoly. He acknowledged the pivotal role of private sector payment players in UPI’s success, stating that the collaboration with private companies has contributed significantly. Das expressed optimism about UPI becoming a global leader.
- Regulatory Overhaul of Banking System: The RBI governor highlighted the recent overhaul of the regulatory architecture of the banking system. Various regulatory steps, including the implementation of leverage ratio, large exposures framework, and guidelines on appointments and committees, have been undertaken to strengthen the regulatory framework.
- Digital Trends in Banking: Discussing the impact of the pandemic, Das noted the exponential rise in digital lending in emerging economies, including India. While acknowledging the increased scale and velocity of digital credit, he raised concerns about associated business conduct issues.
- RBI’s Stance on Cryptocurrency: Governor Das reiterated the RBI’s unchanged position on cryptocurrency. He expressed caution about delving into the crypto space, citing potential risks. Das emphasized that the world, especially emerging markets, might not be equipped to handle a crypto mania akin to historical events like the Tulip mania.
- Central Bank Digital Currency (CBDC): Das shared insights into the RBI’s exploration of Central Bank Digital Currency (CBDC), highlighting the expansion of wholesale CBDC and the exploration of programmable features in retail CBDC to enable specific end uses.
As the BFSI Summit unfolded, Shaktikanta Das provided a comprehensive overview of the challenges and opportunities facing India’s financial landscape, underlining the resilience of the banking sector amidst evolving digital trends.
Sources By Agencies
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