T Rabi Sankar On RBI's Key Focus Areas For Financial Inclusion

Deputy governor of RBI said that RBI mainly focuses to scale the digital infrastructure while preserving the technical stability

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T. Rabi Sankar, deputy governor of RBI, has said about the RBI's key focus areas to improve the financial inclusion and the technological advancements of India's digital payment ecosystem. Rabi Sankar was speaking at the US-India Business Council's India Ideas Summit 2022. The deputy governor spoke about the accessibility of financial services to all the people equally.

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"India's digital payments ecosystem has escalated around 7 per cent over the last 5 years with approximately 29 crore transactions happening daily. RBI mainly focuses to scale the digital infrastructure while preserving the technical stability," said Sankar.

He mentioned that even though the percentage of transactions are going up, the users must be aware of the fraudulent practices happening within the ecosystem, and also said that RBI clearly took a stand to attend the frauds in order to reduce the cyber risk factors.

"There is never a moment to feel we are secure enough. Infrastructural stability, cyber and data security and a stronger compliance culture to maintain level playing field," opined governor.

One of the major focuses of RBI is to popularize UPI across countries. According to his words, cross border payments are still stuck in the last century and this gives a scope for improvement.

"We have been looking to popularize UPI across countries. This will not only be a bridge for Indians abroad, but make the best tool available to all. Internalization of CBDC could be great for us. It is the most efficient answer for cross border payments," said Sankar. He also added that CBDC will be launching in pilots later this year.

Speaking about the role of RBI Innovation Hub in innovation ecosystem, Sankar said that, "US has been the source of most tech we use, now there is lot of innovation happening here. Even our UPI can work wonders in US too."

Pointing out the RBI's synchronized approach with the private sector, deputy governor said that, "We have followed a consultative approach with private sector. As a regulator, RBI can only provide broad guidance. It is the industry and private sector that must work on the use cases in the digital payments space."

Keeping in mind that the business objectives are very important, he also advised that readjustment of business is important today.

The US-India Business Council's 47th Annual General Meeting and India Ideas Summit held on September 6th and 7th, at New Delhi. The key focus of the summit was 'Maximizing the next 75 years of US-India prosperity.'