RBI Deputy Governor Challenges ESMA Overreach

RBI Deputy Governor T Rabi Sankar criticized the European Securities and Markets Authority for its extraterritorial demands to audit the Clearing Corporation of India, asserting India's regulatory sovereignty. He also spoke on handling exchange rate volatility and the growth of digital payments like UPI, mentioning efforts to combat financial fraud with AI systems.

RBI Deputy Governor T Rabi Sankar has criticized the European Securities and Markets Authority (ESMA) for its 'extra jurisdictional' demand to audit the Clearing Corporation of India (CCIL). Speaking at the annual BFSI event by Business Standard, Sankar emphasized that India will not compromise its regulatory sovereignty, despite past attempts at an accommodative stance.

Addressing related issues, Sankar expressed confidence in India's ability to manage currency market volatility, especially following any global political changes. He discussed the progress and impact of UPI digital payments, noting the potential decrease in currency circulation with its rise, and highlighted ongoing AI-centric efforts to curb financial fraud.

Sankar reiterated the cautious approach toward the rollout of central bank digital currency, preferring to continue with pilot programs for the time being. The speech reflects India's regulatory stand and adaptation to evolving financial landscapes while maintaining national policy integrity.

(With inputs from agencies.)