Swaminathan urges controls to keep pace with digital finance
Faster digital finance must retain effective controls, Reserve Bank of India (RBI) Deputy Governor Swaminathan J said on October 15, 2026. Speaking in Mumbai, he urged institutions to invest in trust and faster risk response.
Speed does not transfer responsibility
At the FE Modern BFSI Summit 2026, Swaminathan said India's financial system had improved asset quality and comfortable capital positions.
He set out three priorities: controls that evolve with growth, continuous investment in trust and faster detection, decisions and recovery.
Digital onboarding, AI-led underwriting and autonomous workflows can lower costs and extend access, but verification, maker-checker arrangements and cooling-off periods serve control functions.
Replacing manual checks with algorithms does not remove underlying risks.
Institutions must identify where each displaced control now resides.
Outsourcing sourcing, distribution or models does not transfer the regulated institution's responsibility under its licence.
Trust and time under pressure
Swaminathan linked trust to product suitability, sales incentives, responsible data use and complaints that reveal design or third-party weaknesses.
Fraud at one institution can damage confidence across the system.
Capital, liquidity and provisions remain fundamental, but resilience also depends on rapid escalation and service recovery.
He cited $42 billion in deposits moving in one day during the 2023 US banking stress.
Boards need timely warnings, supported by risk, compliance and audit functions with sufficient stature.
Bad news must travel
Swaminathan's test of governance is how quickly bad news reaches people authorized to act.
His message makes operational response speed a complement to financial buffers, not a substitute.
Growth must retain effective controls and fair conduct if institutions are to sustain customer trust.