Mumbai: Reserve Bank of India has set for itself a packed agenda for 2026-27 with a review of the RBI Act and major technology upgrades, including the rollout of the next-generation core banking system e-Kuber 3.0, development of an alternate payment system, and creation of a unified enterprise platform. It also plans to build an institution-grade AI ecosystem to support central banking functions.On the external front, the RBI will support India’s leadership role in the BRICS finance track and work on a currency swap framework for SAARC nations. It will also focus on diversifying foreign exchange reserves to optimise returns amid rising geopolitical risks.A host of consumer initiatives are also planned. A major thrust will be on scaling up digital currency initiatives, with the RBI planning to widen CBDC use cases in direct benefit transfers and business applications, while also exploring cross-border pilots with select countries. The central bank will also test asset tokenisation and create a sandbox framework for innovations combining CBDC and tokenised financial assets.The payments ecosystem will undergo further changes, with the RBI exploring a ‘kill switch’ for customers to block all digital transactions in case of fraud, and introducing controlled frictions in payment systems to tackle authorised push payment scams. Efforts will also continue to expand UPI linkages globally and deepen digital payments in rural areas.Greater transparency for retail forex users is also on the cards, with mandatory disclosure of conversion charges and transaction costs proposed.On the regulatory front, the central bank plans to strengthen the KYC framework through enhancements to the Central KYC Records Registry and expansion of video-based onboarding for non-resident Indians. It will also review guidelines on interest rates, credit risk management and responsible lending practices, while developing frameworks for shared loan arrangements and credit risk distribution.Financial inclusion remains a core priority, with the RBI targeting 100% coverage of identified districts under its financial inclusion programme by March 2027. It also plans to implement the National Strategy for Financial Inclusion 2025-30 and improve mechanisms for revival of stressed MSMEs through a review of the existing rehabilitation framework.The RBI will undertake a sweeping review of foreign exchange regulations, including rules governing non-debt instruments, foreign currency accounts, deposits, insurance and overseas business establishments, in a bid to rationalise and simplify the regulatory framework.Supervision will see greater use of technology, with the RBI looking to deploy artificial intelligence and machine learning tools to analyse complaints and strengthen oversight. It will also introduce new cyber risk monitoring frameworks, conduct stress testing for climate risks and tighten cybersecurity norms, including guidelines on digital forensic readiness.
