RBI Deputy Governor Warns of Digital Risks

The RBI Deputy Governor, Shirish Chandra Murmu, spoke about how digital innovations like cloud computing and decentralised finance are creating new risks.

These risks come from things like increased connections with unregulated tech providers, single points of failure, and lack of transparency.

He said that digitalisation has made financial transactions faster and more automatic, which means that problems can spread quickly.

This requires regulators to be more proactive and adaptable.

He also noted that digitalisation is blurring traditional regulatory boundaries, making it harder to oversee financial activities.

The main challenge is making good judgements in a fast-changing environment.

He emphasized that regulation should be a stable reference point to guide innovation and maintain trust in the financial system.