Financial system has become increasingly technology-intensive and ever more interconnected, says RBI Deputy Governor

Swaminathan J, Deputy Governor of Reserve Bank of India (RBI) has stated that the Indian financial system is entering its next phase from a position of strength, with improved asset quality and comfortable capital positions. The challenge is to preserve these strengths as the system grows, becomes increasingly technology-intensive and ever more interconnected. He noted further that as financial institutions pursue growth and remove friction; controls must evolve with the process. Trust must be treated as an asset that requires continuous investment. He also mentioned that resilience must increasingly be understood not only in terms of buffers, but also in terms of speed with which an institution can detect, decide and recover. For financial institutions, growth should not be judged only by its pace or scale, but also by the strength of the controls behind it, the fairness of the conduct that supports it, and the trust it is able to sustain.