Mumbai: RBI has taken a keen interest in technology, acknowledging its profound impact on the global order, according to Deputy Governor T Rabi Sankar. This not only highlights the RBI’s strategic approach towards embracing advancements in technology but also recognizes the significance it holds in shaping the world.
Emerging technologies like artificial intelligence (AI), quantum computing, robotics, and synthetic biology not only have the potential to revolutionize human and social lives but also can reshape the global order, said T. Rabi Sankar, Deputy Governor of the Reserve Bank of India (RBI) on Wednesday night.
Recognizing the pivotal role of technology in the establishment of economic, social, and political world orders, the Reserve Bank of India (RBI) is actively leveraging its potential to enhance the efficiency of financial systems and safeguard the public against any potential misuse. Deputy Governor of the central bank, T Rabi Sankar, highlighted the significance of technology in reshaping the banking and related sectors, commonly known as fintech.
He said technology also helps build orders in the world – economic order, social order, political order. For the central bank that basically works on monetary policies, currency issues, banking regulation and supervision, technology is far from one of its operations, other than the fact that it also has an IT department, Sankar pointed out.
Until recently, the use of technology was never on the RBI’s radar but still, in the last couple of decades, it set up a number of important institutions, such as the National Payments Corporation of India (NCPI), that provides technological services to it, he explained.
‘We do not know the outcome of these technologies, (whether) good or bad. But there clearly are risks. And those risks are being highlighted openly and forcefully,’ said Sankar at the grand finale of RBI global hackathon ‘Harbinger 2023’, which witnessed participation from many techies and startups to build innovative products and solutions for the banking and financial ecosystem.
‘As creators of such technological products and innovations, you entrepreneurs need to think about these issues. As regulators, our job is to provide some guidance on the direction in which the innovation should take place,’ he said.
“The primary goal of the Reserve Bank of India (RBI) is to actively engage in technological advancements, with a two-fold objective in mind: to drive innovation for the betterment of people’s financial well-being and the efficiency of the financial system, while also proactively mitigating any potential adverse impacts and effectively channelling them,” stated Sankar.
All of us are well acquainted with fintech, a phenomenon that is revolutionizing the financial system not only in India but also worldwide as mentioned by Sankar. In addition, Sankar highlighted the transformative impact of social media on both political and social structures.
He implored the developers, manufacturers, and pioneers of such technologies, technological products, and innovations to carefully consider the potential risks associated with their creations.
He informed the audience that the RBI’s second edition of the hackathon serves as a strategic initiative to motivate technology experts to come up with innovative solutions for the advancement of financial inclusion.
