Regulatory Reboot: Tackling Financial Ecosystem's Digital Age Challenges

RBI Deputy Governor Shirish Chandra Murmu emphasizes that in the face of rapid digital transformation, regulators must adopt a proactive, risk-based approach. He highlights that new financial activities blur traditional regulatory lines, urging cross-border cooperation and accountability in technology-driven financial services.

In a call to action amid the digital surge, Reserve Bank of India's Deputy Governor Shirish Chandra Murmu underscores the need for adaptive, risk-focused regulatory approaches to ensure financial stability and innovation. Murmu shared these insights at the 3rd Annual Global Conference of the College of Supervisors.

He highlighted the shifting landscape where financial services unbundle and expand beyond conventional regulatory boundaries, creating a complex oversight scenario with multiple regulators involved and a lack of a comprehensive view on risk pathways.

Murmu pointed to systemic risks from technologies like cloud services and decentralized finance, stressing the necessity for regulated entities to remain accountable for outsourced tech operations. He emphasized that regulators should anticipate systemic vulnerabilities and address them through cohesive cross-jurisdictional cooperation.

(With inputs from agencies.)