 "RBI Deputy Governor bats for T20 agility, Test stability in finance")
India’s financial system should blend the mindset of T20 cricket with that of Test cricket, where the innovation and energy of T20 are vital but grounded in the prudence and resilience of Test cricket, said Reserve Bank of India (RBI) Deputy Governor Swaminathan J on Monday. Only then, he added, can institutions be built that not only score quickly but also stay at the crease for decades.
Speaking at an event organised by Standard Chartered Bank, Swaminathan said the RBI sees banks as partners. “Our role is like that of the umpire: we set and interpret the rules, monitor the game, and call out the occasional no-ball or wide when needed, so the play remains fair and safe,” he said, adding that the task of scoring runs by serving customers well, managing risks prudently, and supporting growth rests with the banks.
He also highlighted that strong governance, an ethical culture, and a clear sense of purpose allow institutions to navigate cycles, absorb shocks, and serve their customers and the economy over the long term.
Swaminathan emphasised that technology (tech) has blurred the boundaries between banks, non-banks, and Big Tech firms. “Competition is no longer only from the bank across the street. It may be from an app that lives on your customer’s phone. Reputation risk has become sharper in a world where information and misinformation travel instantly. A single customer complaint, if not handled well, can become a public issue in a few hours,” he cautioned.
He said that while traditional risks such as credit, market, and liquidity risk have not gone away, they have become more complex. “Lending is more granular, markets are deeper, and interconnectedness has increased. At the same time, new categories of risk have come to the fore,” he said.
According to Swaminathan, when it comes to fintechs, the question is not whether banks will “win” against fintechs or vice versa, but how both banks and fintechs can structure partnerships where the strengths of each are combined in a safe and sustainable way.
“In cricketing terms, it is like a good batting partnership where both players complement each other, respect the match conditions, and run between the wickets with mutual understanding,” he explained, adding that fintechs have brought fresh ideas, agility, and a new way of looking at customer pain points, while banks bring something equally important — trust, balance sheet strength, experience in managing risk over cycles, and deep knowledge of regulation and compliance.
He also pointed out that cyberfraud and digital scams have increased, and they can cause real hardship to ordinary customers. While banks have invested in systems to detect suspicious transactions, send alerts, and strengthen authentication, technology alone is not enough. “Sharing of fraud typologies, coordinated efforts to take down mule accounts, and working with law enforcement agencies are all important,” he said.
He warned that banks’ dependence on information technology systems and third-party providers has increased considerably as they digitise more of their operations.
“Banks cannot simply rely on the assurance of service providers. They must understand the technology, the control environment, and the concentration risk arising from many institutions relying on the same provider,” he suggested.