Banks need to collaborate to face tech challenges, not compete, says RBI DG

Reserve Bank of India (RBI) deputy governor T. Rabi Sankar

The Reserve Bank of India (RBI) Deputy Governor, T. Rabi Sankar on January 24 said that banks needs to collaborate to face any technological challenges and not to compete.

"All of us collaborate to ensure that we as a sector are ready to face whatever technology, whatever challenge technology brings us," Sankar said at Indian Banks' Association conference at Mumbai.

He further said that the central bank will provide whatever help is required or suggestions required.

He added that whatever suggestions RBI requires from the banking system, can easily be done if we have a formal structured arrangement for this.

Sankar also said that banking sector, is evolving quite effectively and absorbing technology quite well.

Banking sector needs to keep up that pace and to be able to keep up that pace, they need to be able to have the thinking that is required and the approach that is required to be able to deal with that.

On the Central Bank Digital Currency (CBDC) front, Sankar said that banks have to work bit harder on the programmability to gain some traction from the users.

"I think banks need to identify teams which focus on this, and then develop this. This is not a system, RBI system or anything. It is a public infrastructure," he added.