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Supervisory agenda to focus on enhancing consistency in supervisory practices across regulated entities
On customer protection, the RBI said its focus is on strengthening the KYC framework, extending video-based identification to NRI customers and reviewing responsible business conduct directions, according to its latest annual report
The Reserve Bank of India on Friday said its agenda in the regulatory space in FY27 would be anchored around the two priorities of customer protection and strengthening credit ecosystem.Further, its supervisory agenda would focus on early identification of emerging risks, strengthening root-cause analysis, and enhancing consistency in supervisory practices across regulated entities.On customer protection, the RBI said its focus is on strengthening the KYC (Know-Your-Customer) framework, extending video-based identification to NRI (Non-Resident Indian) customers and reviewing responsible business conduct directions, according to its latest annual report.On the credit side, review of directions on interest rates, credit risk management and market mechanisms for transfer and distribution of credit risk has been proposed, along with a new framework for shared loan arrangements.Further, to enable the Boards of the banks to utilise their time effectively, and to facilitate a more focused and qualitative engagement on matters of strategy and risk governance, the Reserve Bank would rationalise the requirements emanating out of its instructions for placing matters before the Boards.The supervisory agenda would involve reviewing the risk-based approach for KYC/AML (anti-money laundering) supervision of Scheduled Commercial Banks (SCBs), strengthening data-driven supervision through micro-data analytics, and development of supervisory data quality index (sDQI) for Tier 3 and Tier 4 UCBs (Urban Co-operative Banks).The Reserve Bank will also examine implementation of risk-based supervision framework for select non-banking finance companies (NBFCs) and UCBs.CBDC & cross-border paymentsThe RBI plans to expand the CBDC (Central Bank Digital Currency) pilot to cover new use cases under DBT (Direct Benefit Transfer) schemes and the domestic retail space, while exploring additional pilots on tokenisation of financial assets and widening participant coverage.On cross-border payments, the central bank intends to operationalise bilateral CBDC pilots with select use cases and deepen engagement in multilateral projects.The RBI said the Unified Lending Interface (ULI) will be scaled up through onboarding of more data service providers and lenders, and MuleHunter.aiTM (a supervised machine learning model developed by Reserve Bank Innovation Hub (RBIH) for near-real-time identification of mule accounts ) will be expanded across more banks with new features such as a Mule Registry.For 2026- 27, the Reserve Bank is exploring the full-scale implementation of the Digital Payments Intelligence Platform (DPIP), and introduction of the ‘switch-on’ and ‘switch-off’ facility for all digital payment modes.Further, the Reserve Bank would also focus on enhancing digital safety by broadening the scope of existing instructions on limiting liability of customers to cover other categories of fraudulent electronic banking transactions and introducing a compensation mechanism for small value fraudulent electronic banking transactions.The central bank intends to put in place a revised framework for computation of the FI-Index, alongside focus on implementation of action points envisaged under National Strategy for Financial Inclusion (NSFI): 2025-30.Further, the RBI is targeting to widen digital financial inclusion by enabling every eligible account holder in all districts with at least one digital payment mode among UPI, cards, internet/mobile banking, unstructured supplementary service data (USSD) or AePS.To enhance the efficacy of the internal grievance redressal mechanism, the central bank will be focusing on issuing comprehensive instructions on grievance mechanism at the level of regulated entities. Further, the complaint management system of the RBI is being upgraded to improve its efficacy for resolution of complaints.Published on May 29, 2026
