RBI Governor shares his opinion on Indian Banking and UPI, Read what he said in Mumbai summit

On Thursday, Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), delivered a keynote address at the Mint BFSI Summit in Mumbai. Here are the key points from his speech at the banking, financial services, and insurance summit:
Over the past four years, all crucial indicators of scheduled commercial banks (SCBs), including capital adequacy, asset quality, and profitability, have demonstrated improvement. Despite facing significant challenges, the Indian financial sector has emerged stronger, showcasing resilience and progress. The achievements can be attributed to the collective efforts of stakeholders.
Following the Infrastructure Leasing and Financial Services (IL&FS) crisis, the RBI intensified its focus on maintaining macro-financial stability through a range of conventional and non-conventional measures. The Flexible Inflation Targeting (FIT) framework played a crucial role in balancing price stability and growth objectives, allowing for effective response to supply-side shocks during the pandemic.
Regarding UPI, the Governor emphasized that it shouldn’t be viewed as a monopoly. The success of UPI owes much to the active participation of private sector payment players, making it a world-class system. The RBI has undertaken a comprehensive regulatory overhaul of the banking system, implementing measures such as the leverage ratio, large exposures framework, and guidelines on board appointments.
Post-pandemic, digital lending has surged in emerging economies like India, presenting both opportunities and challenges in business conduct. The RBI’s stance on cryptocurrency remains unchanged, with Governor Das cautioning against the risks associated with venturing into the crypto space. The focus is on expanding wholesale Central Bank Digital Currency (CBDC) and exploring programmable features in retail CBDC to enhance user-defined functionalities.