New Delhi, Apr 11 (KNN) The Reserve Bank of India (RBI) on Friday outlined its medium-term strategy for April 2026 to March 2029 under the ‘Utkarsh 2029’ framework, aimed at reinforcing its position as a world-class, full-service central bank.
Strategic Focus And Key Initiatives
The strategy prioritises long-term initiatives such as Project Sa-Mudra to modernise currency management, expansion of central bank digital currency (CBDC) for efficient cross-border payments, scaling up the Unified Lending Interface (ULI) to widen credit access, and developing regulatory frameworks for emerging technologies including artificial intelligence and quantum computing.
The framework builds on the earlier Utkarsh 2.0 roadmap, with continued focus on internationalisation of the rupee and global expansion of UPI to strengthen cross-border payment systems, reported Business Standard.
RBI Governor Sanjay Malhotra said the plan addresses evolving technological, geopolitical, and climate-related challenges, with emphasis on simplifying regulations, adopting a customer-centric approach, deepening financial markets, upgrading technology, and enhancing workforce capabilities.
Regulatory, Tech And Institutional Reforms
The strategy is structured around six pillars: robust regulation, customer-centric and inclusive finance, competitive markets, effective technology, a future-ready organisation, and a global India focus.
As part of regulatory reforms, the RBI plans to review and rationalise master directions and circulars to reduce compliance burdens, assess customer service standards in banks, and streamline grievance redress mechanisms.
The expansion of ULI is expected to improve credit access and financial inclusion, while system-wide risk assessment frameworks and services under the Citizen’s Charter will also be strengthened.
On financial markets, the RBI aims to modernise infrastructure, expand central clearing mechanisms, improve price transparency in government securities, and boost retail participation.
Internally, the central bank plans to digitise processes and upgrade platforms such as forex management systems, grievance portals, and currency operations, alongside developing advanced supervisory tools including an indigenous AI-based system and next-generation platforms like e-Kuber 3.0.
The RBI also plans to introduce frameworks for AI usage, asset tokenisation, and digital innovation through regulatory sandboxes, while focusing on workforce upskilling and integrating sustainability and climate considerations into its operations.
The Utkarsh 2029 framework aligns with the RBI’s broader objective of strengthening the financial ecosystem while supporting innovation and inclusive growth.
(KNN Bureau)
