The Reserve Bank of India (RBI) has showcased its growing interest in the impact of technology through its participation in a global hackathon. T Rabi Sankar, the deputy governor of RBI, emphasized the transformative effects of fintech on the global financial system during his speech at the event’s grand finale, named ”Harbinger-2023 — Innovation for Transformation”.
Sankar questioned why central banks, governments, and authorities have recently been showing increased involvement in technology, highlighting that the RBI’s core operations primarily revolve around monetary policies, currency issues, and banking regulation. While technology was not previously on the RBI’s radar, it has established important technological institutions, including the National Payments Corporation of India (NCPI), which provide services to the central bank.
The RBI’s interest in technology stems from the realization of its impact on human activities and beyond. Sankar emphasized that technology not only facilitates human activities but also helps build economic, social, and political orders. Fintech, in particular, is transforming the global financial system, while social media is reshaping the political and social landscape. Furthermore, emerging technologies such as artificial intelligence, synthetic biology, quantum computing, and robotics have the potential to revolutionize various aspects of human life and alter the global order.
Sankar urged technology creators to consider the risks associated with these innovations. The RBI’s objective in involving itself with technology is twofold: to guide innovation for the betterment of people’s financial well-being and the efficiency of the financial system, and to proactively anticipate and contain any undesirable effects of technology.
The global hackathon organized by the RBI serves as a platform to channel the creative energy of technology experts towards innovations that benefit financial inclusion. By incentivizing technological advancements, the RBI hopes to promote positive transformation in the financial sector.
In conclusion, the Reserve Bank of India’s participation in the global hackathon underscores its recognition of the significant role technology plays in shaping various aspects of society. The RBI aims to harness the potential of technology to enhance the financial well-being of individuals while also ensuring the responsible usage of innovative technologies.
