- The Deputy Governor of RBI suggested the country’s banks employ AI and blockchain technologies.
- The move comes against the backdrop of the Indian government’s ambiguous attitude towards cryptocurrencies.
Deputy Governor Mahesh Kumar Jain spoke about risk management techniques for long-term growth and stability at a seminar for directors of Indian banks hosted by the Reserve Bank of India (RBI).
Jain discussed the necessity of strong corporate governance, governance structure, and risk management systems in the future. He said, at the moment, radical advances include technological progress, rising consumer demands, and crypto-related risks.
The deputy governor further added that other factors have presented a number of new risks that may be harmful to banking institutions that use technology.
He also said there is a need for more exclusive innovations that may be helpful in dealing with the financial industry’s new and severe issues.
He stated that,
“To prepare for the future, Indian banks will need to focus on digital transformation, enhance customer experience, adopt innovative technologies such as AI and blockchain, invest in cybersecurity measures, look for opportunities to derive synergistic benefits through collaboration with other players as well as upskilling their workforce to meet the demands of the digital era.”India’s ambiguous attitude towards cryptocurrencies The comments came against the backdrop of the Indian government’s ambiguous attitude towards cryptocurrencies.
India introduced the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 in the Lok Sabha, the lower house of the Parliament.
The bill was designed to lay the groundwork for the introduction of digital currency issued by the RBI. But it couldn’t be legislated.
In India, there is no central authority that regulates cryptocurrency as a payment medium. There are no norms and regulations, nor are there any standards for resolving issues while dealing with cryptocurrency.
India’s Finance Minister proposed taxing digital assets, escalating the dispute over the legality of cryptocurrencies in the country. The government announced a 30% tax on cryptocurrency gains in the recent Union Budget 2022.
Many have welcomed the decision to tax virtual money as the first step towards recognizing it. However, the government was yet to provide an official statement on whether currencies such as Bitcoin are legal in India.
India launched the central bank digital currency (CBDC) on a pilot basis for wholesale and retail segments in November 2022. And started testing its offline functionality in March this year.
RBI executive director Ajay Kumar Choudhary shared India’s intention to use its CBDC as a medium of exchange.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.