the Reserve Bank of India (RBI) recently organized a conference exclusively for directors of Indian banks, which shed light on the importance of adopting technologies like Blockchain and AI.
During the event, RBI Deputy Governor Mahesh Kumar Jain took center stage, urging bank directors to embrace technologies such as Artificial Intelligence (AI) and Blockchain.
Jain believes that Indian banks can open new avenues for growth and improve stability in the ever-evolving financial landscape by harnessing the power of innovation. technology.
The conference aims to encourage the integration of these technologies to drive sustainable growth and future-proof the Indian banking industry.
SBI Governor Addresses Potential Risks
During his speech, Deputy Governor Mahesh Kumar Jain assessed the risks associated with sustainable growth. He further discussed the importance of effective corporate governance, management structure, and how to prepare for potential risks.
According to Jain, banks face a series of challenges arising from technological disruption, customer expectations, and cyber threats in today’s ever-changing environment. These factors introduce new risks across technology, business, and operations.
That said, the deputy governor advised banks to prioritize the adoption of technology to effectively address these challenges.
Jain further highlighted the importance of technology integration, stressing it as a key strategy to ensure sustainable growth in the banking sector and mitigate risks.
In his words, “To prepare for the future,” banks need to “adopt new technologies such as Blockchain and AI,” also investing in cybersecurity measures.
India Embraces Blockchain Innovation
The Reserve Bank of India (RBI) pilot tests are underway for the digital rupee, targeting improved cross-border payments and mitigating arbitrage losses.
RBI’s Central Bank Digital Currency (CBDC) experiments aim to improve efficiency and enhance secure transactions in the retail and wholesale sectors.
India’s Finance Minister, Nirmala Sitharaman, recently SAYS India is not against blockchain technology, but crypto needs monitoring. He further admitted that blockchain provides many options and can be used in many different ways.
SItharaman believes that the central bank should drive crypto; otherwise, it may fall like those without proper government support, causing a large spillover effect like FTX.
she highlights the limitations of the actions of individual countries in regulating crypto assets, saying that the interconnectedness of the global order makes such measures ineffective.
As technology transcends borders, he emphasized the need for coordinated efforts to address the challenges posed by cryptocurrencies, which transcend geographic boundaries. India has taken a strict stance on crypto trading, prohibiting traders from offsetting losses against gains.
Notably, Sitharaman imposed a 30% flat tax on crypto income last year and a 1% tax deducted at source (TDS) on crypto trades above 10,000 Indian rupees ($122).
In addition, there are extremes penaltiesincluding penalties equivalent to TDS for non-deduction and 15% annual interest charge for late payment. In addition, imprisonment of up to six months is possible, indicating a strong regulatory approach.
Featured image from Pixabay and chart from TradingView.com