Reserve Bank of India (RBI) Governor Shaktikanta Das today said that India has developed a world-class digital public infrastructure which has facilitated the development of high-quality digital financial products. He said, the country is now home to the world’s third most vibrant startup ecosystem, with over one lakh 40 thousand startups, and more than a hundred unicorns.

Addressing an event RBI@90 High-Level Conference in New Delhi today, Mr Das stressed that India’s experience in digital public infrastructure can be leveraged by other countries to improve and usher in a global digital revolution. On the use of digital currencies, the RBI Governor said, Central Bank Digital Currencies (CBDC) has the potential to facilitate efficient cross-border payments. He said, India is one of the few countries that have launched both wholesale and retail CBDCs. He said, harmonisation of standards and interoperability would be important for CBDCs for cross-border payments and to overcome the serious financial stability concerns associated with cryptocurrencies.

On the challenges posed by the Artificial Intelligence and Machine Learning in the financial sector, Mr Das said, AI has introduced new vulnerabilities, such as increased susceptibility to cyberattacks and data breaches. He asked the banks and other financial institutions to put in place adequate risk mitigation measures against all these risks.

The Governor also raised concern over the rising debt saying that global public debt has surged post the pandemic to 93.2 per cent of GDP in 2023 and is likely to increase to 100 per cent of GDP by 2029. He said, in major economies, debt-GDP ratios are on an upward trajectory, raising concerns about their sustainability and their negative spillovers for the broader global economy.