As financial firms digitize, Reserve Bank of India (RBI) Deputy Governor Swaminathan J urged them to keep oversight aligned with expansion, warning that weak controls can undermine trust across the financial system.
Speaking at the Financial Express Modern BFSI Summit 2026 in Mumbai on Oct. 15, Swaminathan said digital tools can lower costs, improve customer experience and extend services. He urged firms to adapt safeguards as they add digital onboarding, use artificial intelligence (AI) in underwriting and work with outside providers. The RBI published the address on Oct. 21.
He said capital, liquidity and provisions remain important. He said resilience also depends on understanding emerging disruptions and keeping critical services running. Swaminathan referred to the 2023 U.S. banking stress, citing $42 billion in deposits moving in a single day. The address did not name a bank.
Swaminathan said institutions should preserve effective oversight when introducing automation and first identify the risk a human review was designed to catch. The regulated institution remains responsible for work handled by outside providers.
Swaminathan also said sales pressure during rapid growth can draw attention away from customer treatment, service quality and complaint handling. He pointed to product sales and customer-data use as areas that can affect trust. Failures in one part of the financial system, he said, can erode confidence more broadly.
EconoTimes previously reported on Swaminathan’s call for stronger financial controls as financial institutions grow. The address set out no new regulation or rollout timetable.
