Tech entities should develop robust governance system: RBI ED Ajay Kumar Choudhary | The Financial Express

Tech entities should develop robust governance system: RBI ED Ajay Kumar Choudhary

A blind adoption without understanding the biases and the models based on artificial intelligence, machine learning and internet-of-things built with advanced technology will only prove counterproductive, Choudhury said, adding that scalability and interoperable are must for technology-backed innovations.

Tech entities should develop robust governance system: RBI ED Ajay Kumar Choudhary
The use of technological innovations must be done in a sensible way and risks should be properly managed.

Technology-backed entities such as startups should do more to develop a robust governance system, which is important for sustainability, Ajay Kumar Choudhary, executive director of the Reserve Bank of India (RBI) said. The use of technological innovations must be done in a sensible way and risks should be properly managed.

A blind adoption without understanding the biases and the models based on artificial intelligence, machine learning and internet-of-things built with advanced technology will only prove counterproductive, Choudhury said, adding that scalability and interoperable are must for technology-backed innovations.

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RBI’s focus area is innovation, while innovations are desirable they also need to be responsible,” he said.

Citing several initiatives by the central bank to bolster digital banking such as peer-to-peer lending and the NBFC account aggregator framework, Choudhary said that the Reserve Bank of India had also started a regulatory sandbox, through which innovative solutions are launched on a test basis.

The central bank has announced on-tap applications for the second cohort on ‘cross border payments’ and also launched a theme-agnostic fifth cohort under the regulatory sandbox initiative.

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