Archive · 1 Dec 2025
RBI Deputy Governor Warns on Tech Risks
The Reserve Bank of India's deputy governor, Swaminathan J., recently warned banks that they can't just trust third-party companies to handle their technology needs.
He said banks need to really understand the technology they're using and be prepared to handle any problems that come up.
This is important because when banks use the same third-party services, a problem can affect millions of customers at once.
The deputy governor mentioned recent examples where big banks like Barclays and the State Bank of India had outages that caused a lot of trouble for customers.
He also said that banks need to be ready to quickly fix any issues that happen, not just hope they won't occur.
Additionally, he emphasized the importance of collaboration among banks, fintechs, and other entities for the success of any institution.
He also talked about the need for good customer service, even in a digital world, and the importance of protecting customers from digital scams.
He suggested that banks and fintechs should work together in a way that combines their strengths safely and sustainably.
RBI deputy governor warns banks against relying solely on third-party service providers for technology solutions.
Banks must understand the technology, control environment, and concentration risk of outsourcing.
Recent global bank outages highlight the vulnerability of relying on third-party platforms.
SBI and UPI experienced significant disruptions in 2025, affecting millions of customers.
RBI emphasizes the need for banks to quickly detect, contain, and recover from incidents.
- Who
- Reserve Bank of India (RBI) Deputy Governor Swaminathan J.
- What
- Warning to banks about relying on third-party service providers for outsourced technology solutions and emphasizing collaboration, customer service, and digital safety.
- When
- 28 November 2025
- Where
- Annual banking event organized by Standard Chartered Bank
- Why
- To ensure banks understand the technology, control environment, and concentration risk of outsourcing, and to highlight the importance of collaboration, customer service, and digital safety.
Banks
Regulators
Outsourcing Technology
Banks
Banks may prefer outsourcing to focus on core banking activities and reduce costs.
Regulators
Regulators emphasize the need for banks to understand and control the technology they use to mitigate risks.
- Date of Speech
- 28 November 2025
- Speaker
- Swaminathan J., RBI Deputy Governor
- Event
- Annual banking event by Standard Chartered
- Notable Incidents
- Barclays (Jan 2025), SBI (Apr 2025), UPI (Apr 2025)
- Key Concern
- Reliance on third-party service providers
- Impact of Outages
- Millions of customers affected
- RBI's Stance
- Banks must understand technology and control environment
- Customer Service
- Banks should treat customers fairly and resolve issues promptly
- Partnerships
- Banks and fintechs should combine strengths safely and sustainably
- Digital Safety
- Banks should prioritize sharing fraud typologies and working with law enforcement
