Banks must adapt to technology quickly, ensure resilience: DFS Secy

Financial Services Secretary M Nagaraju on Friday said banks must adopt rapid technological changes, modernise core systems, and prioritise compliance and risk measures to ensure resilience amid global challenges.

In a virtual keynote address at the IBA's 20th Annual Banking Technology Conference, Expo & Citations - 2025 conference on Future Ready Banking for Viksit Bharat, he emphasised that technological advances like DPI and Unified Lending Interface are empowering financial inclusion.

"Banks must adapt to rapid changes, modernise core systems, and prioritise compliance and risk measures to ensure resilience amid global challenges," he said.

Scaling up globally competitive banks, closing credit gaps, and expanding insurance and pension coverage are critical to realising the vision of Viksit Bharat by 2047, he said.

The financial services secretary also highlighted India's evolving financial landscape, driven by innovations like JAM, UPI, and ONDC.

Emphasising AI/ML's role, he highlighted how it enhances banking efficiency and customer service.

He also underscored the need for enhancing data governance and management practices to ensure compliance with data protection regulations and maintaining robust risk measures, particularly in areas like cybersecurity, fraud prevention, and mule activity, thereby leveraging the untapped potential of India's underpenetrated mass market by innovating and customising products that drive growth.

Banks need to be vigilant and upskill their teams to serve the customer efficiently, he added.

The event brings together the brightest minds and innovators in India's financial sector, discussing the transformative power of technology and its impact on banking.

Speaking on the occasion, RBI Deputy Governor T Rabi Sankar said that it is important for the banking system to keep pace with technology.

He pitched for collaboration in the banking sector, which is gearing up to face new challenges on the technology front.

"We need to keep up that pace and continue that thinking and approach," he added.