THE Reserve Bank of India (RBI) unveiled a slew of initiatives aimed at improving the financial ecosystem, promoting transparency and fostering innovation at the recent Monetary Policy Committee (MPC) meeting. Key announcements include the expansion of the FX-Retail Platform through tie-ups with Bharat Connect, use of AI platforms to combat fraud and a podcast to raise awareness of relevant information.
Governor Shaktikanta Das announced these measures. Here’s a look at how the RBI aims to include technological innovation in the balance of economic stability.
Expansion of the FX-Retail platform
Launched in 2019, the FX-Retail platform will now be linked to NPCI’s Bharat Connect platform. This integration will allow users to transact on the FX-Retail platform through the mobile applications of banks and non-bank payment system providers, thereby improving accessibility.
Improve communication with podcasts
To improve transparency and engagement, the RBI is adding podcasts to its communications toolkit. This additional media will facilitate wider dissemination of information and better connect with the public.
Extension of credit lines via 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 expansion is expected to strengthen financial inclusion and improve access to formal credit, particularly for new clients.
Framework for responsible AI in the financial sector
In response to the rapid technological transformation of 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
To combat digital fraud, the RBI Innovation Hub (RBIH) in Bangalore has developed MuleHunter.AIan AI/ML-based model to identify mule bank accounts. This innovative tool aims to help banks quickly process mule accounts and reduce digital fraud.