RBI Deputy Governor Highlights New Challenges in Banking

In a recent address to graduating students at the National Institute of Bank Management (NIBM) in Pune, RBI deputy governor Swaminathan J emphasized the growing complexities in the banking sector. He pointed out that while digital tools have enabled efficiency, they have also introduced new vulnerabilities such as cyber threats, phishing, and deepfakes.

The Importance of Vigilance and Empathy

Swaminathan stressed that vigilance is no longer optional but a core professional skill in today's banking environment. He also highlighted a significant rise in customer complaints, attributing this trend not to product failures but to a lack of empathy in digital interactions.

Lessons from the Past for Future Banking

Using the Titanic as an analogy, the deputy governor warned that the biggest or most advanced systems do not always succeed. Instead, it's the institutions that stay alert and respect the value of foresight that thrive. He urged young bankers to adopt the mindset of lookouts, constantly questioning potential risks and challenges on the horizon.

Building Trust in the Digital Age

Swaminathan concluded by underscoring the importance of conventions and professional judgment in banking. He cited the practice of crossing cheques with "account payee" as an example of how professional norms, developed over time, play a crucial role in enhancing transaction safety and limiting misuse.