Shifting Paradigms: Banking Supervision in the Digital Age

RBI Deputy Governor Swaminathan J emphasized the need for continuous operational discipline and data governance in banking. He highlighted the shift from traditional supervision to ongoing awareness, focusing on operational resilience and third-party dependencies in the digital era, at the College of Supervisors conference.

In a call for change, RBI Deputy Governor Swaminathan J urged banks to adopt stricter operational discipline and data governance throughout the year, transitioning from periodic checks to continuous oversight.

Addressing the College of Supervisors, Swaminathan highlighted the shift in banking dynamics, emphasizing that apparent stability can be deceptive. He noted the shift from 'branch and product' to 'pipes and code.'

He stressed that modern supervision should focus on operational resilience, seamless grievance resolution, and the comprehensive management of third-party risks, alongside traditional financial metrics.