New Delhi: Reserve Bank of India (RBI) Governor, Shaktikanta Das on Monday said India is exploring the feasibility of expanding its 24/7 RTGS to settle transactions in major global currencies, including the US dollar, euro, and GBP, through bilateral or multilateral arrangements.
India is one of the few large economies with round-the-clock RTGS. It could benefit from enhanced cross-border payments in trade currencies, significantly improving transaction efficiency, he said at a press conference organized by RBI in Delhi.
This development is part of ongoing efforts by India and other economies to link cross-border fast payment systems. Additionally, remittances are seen as a starting point for emerging economies like India to facilitate peer-to-peer (P2P) payments.
“We believe there is immense scope to significantly reduce the cost and time for such remittances,” he said.
Das also emphasized the growing financial stability risks stemming from the increasing use of artificial intelligence (AI) in the financial sector. He noted that heavy reliance on AI, particularly when concentrated among a few tech providers, could amplify systemic risks. Failures or disruptions in AI-driven systems may lead to widespread instability across the financial sector. AI’s opacity, along with the difficulty in interpreting algorithmic decision-making, further complicates risk mitigation.
“Moreover, the growing use of AI introduces new vulnerabilities, such as increased susceptibility to cyberattacks and data breaches. Additionally, AI’s opacity makes it difficult to audit or interpret the algorithms which drive decisions. This could potentially lead to unpredictable consequences in the markets,” the governor said.
