RBI aims to create robust frameworks for emerging technologies under ‘Utkarsh 2029’

The Reserve Bank of India has come up with its medium-term strategy framework ‘Utkarsh 2029’. As part of it, the central bank plans to advance Project Sa-Mudra to modernise currency management systems and significantly expand the use of Central Bank Digital Currency (CBDC). This will make cross-border payments more efficient.

The framework also focuses on expanding the Unified Lending Interface (ULI) to enhance access to credit, particularly for underserved segments.

The framework for the period of April 2026 to March 2029 is built on six pillars like robust regulations, customer centricity and inclusive finance, competitive markets, effective technology, future-ready organisation and Global India.        

The RBI aims to create robust frameworks for adopting emerging technologies such as AI and quantum computing in the financial sector.

Under the regulatory framework, the central bank aims to reduce procedural redundancies, provide regulated entities with greater operational flexibility, and promote responsible innovation across both existing and emerging segments of the financial ecosystem.

With the expansion of ULI, RBI looks forward to enhancing access to the financial system, reducing lending costs, and promoting inclusive credit delivery.

Underscoring interconnectedness in the financial system, the Bank intends to review and enhance the system-wide contagion risk assessment.

Under the competitive markets pillar, the RBI will focus on deliverables that aim to reduce the turnaround time of auctions, strengthen pricing transparency in the G-Secs market, and enhance retail access to markets.

The bank aims to harness technology across its operations by transforming its interface with regulated entities and citizens into a fully digital experience, thereby eliminating paper-based and email-driven processes. All internal workflows will be end-to-end digitalized.

The currency management module is being upgraded to replace manual processes and physical registers with digital solutions.

Through cyber risk capacity building, issuing a framework on the use of AI in the financial sector, expanding asset tokenisation and setting up Digital and AI sandboxes, the bank aims to promote responsible innovation and mindful use of technology in the financial sector.

“The bank endeavours to foster greater cooperation with the rest of the world by promoting the implementation of the UPI stack in other countries to modernise the payment infrastructure, augmenting international trade settlement in INR, expanding cross-border CBDC arrangements, and adopting global standards to enhance global competitiveness,” per the Utkarsh document.

The RBI underscored that this strategy framework is a key component of its broader roadmap to advance the global integration of the rupee, extend UPI to international markets, and strengthen bilateral as well as multilateral arrangements for central bank digital currencies (CBDCs).