RBI Governor on Balanced Regulation and Financial Inclusion
Why in the news
The RBI Governor urged regulators to protect financial security without choking legitimate business or shutting people out of the system.
Key facts
- Regulation should follow a risk-based approach to cut compliance burdens.
- Laws ought to be precise and aim only at illicit activity.
- Customer rights and convenience must rank high while due diligence is done.
- Digital KYC and video KYC ease onboarding; the Central KYC Records Registry has over 1 billion records.
- KYC across regulated entities needs streamlining to avoid duplication.
Cross-border payments
- India stays committed to the G20 roadmap with a 2027 timeline.
- Goals: faster, cheaper, more transparent, more inclusive payments.
- Solutions should be technology-neutral.
Exam angle
- Central KYC Registry: over 1 billion records.
- G20 cross-border payment target year: 2027.