Key Highlights of RBI Governor’s Speech
- Regulations should not create barriers to financial inclusion.
- Risk-based approach recommended to minimize compliance burdens.
- Financial security must be ensured, but not at the cost of stifling legitimate business activities.
- Digital KYC & Central KYC Registry are crucial for seamless onboarding.
- India committed to G20 roadmap for cross-border payment improvements by 2027.
Regulations and Financial Inclusion
- RBI aims to balance regulation and ease of business.
- Customer rights and convenience must be prioritized while fulfilling due diligence requirements.
- Laws should be precise, targeting only illicit activities, avoiding unnecessary burdens on legitimate businesses.
Advancements in Digital Financial Systems
- India’s digital KYC and video KYC systems enhance customer onboarding.
- Central KYC Records Registry with over 1 billion records simplifies due diligence.
- Need to streamline KYC across all regulated entities to avoid duplication.
Enhancing Cross-Border Payments
- India remains committed to G20’s goal of making cross-border payments:
- Faster
- Cheaper
- More Transparent
- More Inclusive
- Technology-neutral solutions needed for seamless implementation.
RBI prioritizes secure yet inclusive financial systems, ensuring regulations do not hinder legitimate activities. Digital transformation and streamlined KYC will drive efficiency in financial services. Cross-border payment improvements remain a key focus for India’s financial roadmap.
