Digital banking should be clear, unambiguous: RBI deputy governor

Deputy Governor Swaminathan J says banks must design digital journeys that clearly inform customers of authorisations, with transparent terms and predictable responses

Reserve Bank of India (RBI) Deputy Governor Swaminathan J has advised banks to design digital journeys in a manner that ensures customers clearly understand what they are doing and authorising.

 

He said terms, charges and consent mechanisms should be unambiguous, alerts must be timely and meaningful, and in the event of a failure, customers should be informed promptly about the next steps, with responses that are predictable and supportive.

 

Speaking at an Axis Bank event, Swaminathan said, “Transparency means customers are given clear information and are not surprised later. It means decisions are recorded in a way that can be explained.” The event happened on January 30, and his speech was uploaded on the RBI website on Wednesday.

 

Emphasising that culture, not just strategy, sustains institutions over time, Swaminathan said customer centricity, ethics, teamwork, transparency and ownership must guide daily conduct in banks.

 

On customer centricity, he said while policies are framed at the highest levels, it is people on the ground who ultimately meet customers. He also stressed that ethics in banking should not be treated as a “soft theme”, but as a discipline that protects customers, employees and the institution itself.

 

Every large organisation faces moments of temptation—whether to cut corners, delay disclosures, or adopt convenient interpretations, he said.

 

“Ethics is what stops small compromises from becoming large problems. It is not about being perfect. It is about how you handle grey areas, and how fairly and quickly you correct a mistake.”

 

He also underscored the importance of regulatory discipline, saying it should never be viewed as a box-ticking exercise, but as central to institutional reliability and long-term credibility.