The RBI is constantly working on devising policies, systems and platforms to make the financial sector stronger, nimble, and customer-centric, he said.
However, the governor also cautioned financial institutions about the risk of technology, especially artificial intelligence.
He further said the UPI system has the potential to evolve into a cheaper and quicker alternative to the available channels of cross-border remittances and “a beginning can be made with small value personal remittances as it can be quickly implemented”.
Speaking on the theme of DPI (digital public infrastructure) and emerging technologies, he said over the last decade, the traditional banking system has undergone an unprecedented technological transformation.
By all indications, this process is likely to become even more intense in the coming years, he added.
He said DPI spurs market innovation by reducing transaction costs, democratising access, maintaining competition through interoperability, and attracting private capital.
“The advantage of developing DPI in the public sector is that typically the private sector would be averse to capital investment to create infrastructure with uncertain returns,” the governor said and added that privately created infrastructure may not also be amenable to democratised access or interoperability.
+ There are no comments
Add yours