Creating robust data analytics ecosystem to support supervisory functions: RBI

Reserve Bank of India (RBI), Deputy Governor Swaminathan J said the central bank is working towards creating a robust data analytics ecosystem to support its supervisory functions, ensuring that the approach remains forward-looking and agile in a rapidly changing world.

He said the supervision of banks and financial institutions is a relatively recent development - dating back around 50 years.

From the early days, central banks have fulfilled their role as the lender of last resort, ensuring that financial institutions remained solvent and protected against systemic crises, Swaminathan said.

As the world rapidly evolves, so does the nature of risks confronting the financial sector. Technological advancements have brought incredible efficiencies but also significant vulnerabilities, such as cybersecurity threats and risks stemming from third-party dependencies, he mentioned.