Economy
RBI Deputy Governor Warns Faster Finance Must Keep Controls Intact
RBI Deputy Governor Swaminathan J said financial institutions must evolve controls alongside technology, outsourcing and faster growth.
What happened
Swaminathan J said India’s financial system enters its next phase with improved asset quality and comfortable capital positions. But as onboarding, underwriting and workflows become faster and more automated, institutions must preserve the controls that prevent errors, fraud and adverse selection. Outsourcing does not transfer accountability: regulated entities remain responsible for risks linked to third parties.
Why it matters
Removing checks without replacing their function can dilute controls, while failures can trigger customer loss, litigation, regulatory penalties and reputational damage.
Source: RBI Speeches