The Reserve Bank of India (RBI) has unveiled a series of initiatives aimed at enhancing the financial ecosystem, promoting transparency and fostering innovation at the recently held Monetary Policy Committee (MPC) meeting. Among the key announcements is the expansion of the FX-Retail platform through linkages with Bharat Connect, use of AI platforms to curb frauds and a podcast to make people aware of relevant information.
Governor Shaktikanta Das announced these measures. Here is a brief of how the RBI aims to include tech innovation in balancing economic stability.
FX-Retail platform expansion
Launched in 2019, the FX-Retail platform will now be linked with the Bharat Connect platform of NPCI. This integration will enable users to transact on the FX-Retail platform via mobile apps of banks and non-bank payment system providers, enhancing accessibility.
Enhancing communication with podcasts
To improve transparency and engagement, the RBI is adding podcasts to its communication toolkit. This additional medium will facilitate the wider dissemination of information and better connect with the public.
Extending credit lines through UPI to small finance banks
Initially launched in September 2023, the credit line on UPI, which was available through Scheduled Commercial Banks (SCBs), will now be extended to Small Finance Banks. This extension is expected to deepen financial inclusion and enhance formal credit access, particularly for new-to-credit customers.
Framework for responsible AI in financial sector
In response to the rapid technological transformation in the financial sector, the RBI is setting up a committee to recommend a Framework for Responsible and Ethical Enablement of AI (FREE-AI). This framework will address risks such as algorithmic bias, explainability, and data privacy, ensuring the ethical deployment of AI technologies.
Launch of MuleHunter.AI
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