• A top official from India’s central bank has proposed that the banks employ AI and blockchain to ensure long-term growth and stability.
• The move comes against the backdrop of the Indian government’s ambiguous attitude towards cryptocurrencies.
• Deputy Governor Mahesh Kumar Jain spoke about risk management techniques for long-term growth and stability at a seminar for directors of Indian banks hosted by RBI.
A top official from India’s central bank, Reserve Bank of India (RBI), has proposed that the country’s banking institutions employ artificial intelligence (AI) and blockchain technologies to ensure growth and stability. Deputy Governor Mahesh Kumar Jain discussed the necessity of strong corporate governance, governance structure, and risk management systems in the future. He stated that radical advances include technological progress, rising consumer demands, and crypto-related risks which require more exclusive innovations to deal with these new financial industry issues. With this in mind, he suggested Indian banks look into digital transformation, enhance customer experience, adopt innovative technologies such as AI and blockchain, invest in cybersecurity measures, look for opportunities to derive synergistic benefits through collaboration with other players as well as upskilling their workforce to meet the demands of the digital era.
Indian Government’s View on Cryptocurrency
The comments came against the backdrop of the Indian government’s ambiguous attitude towards cryptocurrencies. India introduced Cryptocurrency and Regulation of Official Digital Currency Bill 2021 in Lok Sabha but it couldn’t be legislated yet. In India there is no central authority that regulates cryptocurrency as a payment medium so there are no norms or regulations regarding its use either.
The proposal made by RBI could have major implications if implemented properly by Indian banks as it would open up immense possibilities for them using advanced technology like AI & Blockchain in order to better manage their operations with greater security & efficiency while also providing customers with improved services & experiences. This could ultimately lead to better banking practices & more stable economic conditions within India over time.
In conclusion, RBI’s proposal suggests that embracing modern technology like AI & Blockchain can bring positive outcomes for banking operations in India both now & in future while helping address some of current issues faced due to lack proper regulations around cryptocurrency usage within country’s boundaries by providing much needed clarity around these matters too .