The Reserve Bank of India (RBI) has outlined an ambitious agenda for the fiscal year 2026-27, focusing on technology upgrades, regulatory reforms, and financial inclusion. Key initiatives include the rollout of the next-generation core banking system e-Kuber 3.0, development of an alternate payment system, and creation of a unified enterprise platform. The central bank also plans to build an institution-grade artificial intelligence (AI) ecosystem to support central banking functions.
External and Consumer Initiatives
On the external front, the RBI will support India's leadership role in the BRICS finance track and work on a currency swap framework for SAARC nations. It will also focus on diversifying foreign exchange reserves to optimise returns amid rising geopolitical risks. A host of consumer initiatives are planned, including scaling up digital currency initiatives. The RBI plans to widen Central Bank Digital Currency (CBDC) use cases in direct benefit transfers and business applications, while exploring cross-border pilots with select countries. The central bank will also test asset tokenisation and create a sandbox framework for innovations combining CBDC and tokenised financial assets.
Payments Ecosystem Changes
The payments ecosystem will undergo further changes, with the RBI exploring a 'kill switch' for customers to block all digital transactions in case of fraud. It will introduce controlled frictions in payment systems to tackle authorised push payment scams. Efforts will continue to expand UPI linkages globally and deepen digital payments in rural areas. Greater transparency for retail forex users is also on the cards, with mandatory disclosure of conversion charges and transaction costs proposed.
Regulatory and Supervisory Reforms
On the regulatory front, the central bank plans to strengthen the KYC framework through enhancements to the Central KYC Records Registry and expansion of video-based onboarding for non-resident Indians. It will review guidelines on interest rates, credit risk management, and responsible lending practices, while developing frameworks for shared loan arrangements and credit risk distribution. The RBI will undertake a sweeping review of foreign exchange regulations, including rules governing non-debt instruments, foreign currency accounts, deposits, insurance, and overseas business establishments, in a bid to rationalise and simplify the regulatory framework.
Financial Inclusion and Supervision
Financial inclusion remains a core priority, with the RBI targeting 100% coverage of identified districts under its financial inclusion programme by March 2027. It plans to implement the National Strategy for Financial Inclusion 2025-30 and improve mechanisms for revival of stressed MSMEs through a review of the existing rehabilitation framework. Supervision will see greater use of technology, with the RBI looking to deploy artificial intelligence and machine learning tools to analyse complaints and strengthen oversight. It will also introduce new cyber risk monitoring frameworks, conduct stress testing for climate risks, and tighten cybersecurity norms, including guidelines on digital forensic readiness.
