Murmu Emphasized That Banks Should Focus on Functions Critical to Their Resilience and Those That Matter Most Directly to Customers

Resilience should be built into banks' design for growth — not bolted on after expansion has already happened, said RBI Deputy Governor Shirish Chandra Murmu. Speaking at CNBC-TV18's Banking Transformation Summit in Mumbai, Murmu said that as banks grow, their capacity must keep pace with expanding reach, transaction volumes, and delivery arrangements. "Systems that perform well at today's volumes may behave quite differently at tomorrow's scale, and that calls for timely upgrades: in technology, in processes, in oversight — all of which innovation can help deliver, he said.

Murmu emphasized that banks should focus on functions critical to their resilience and those that matter most directly to customers. "And this requires people as much as it requires technology. Institutions need people capable of understanding new systems, of challenging models rather than simply trusting them, of overseeing external providers, and of connecting technological change to financial and conduct outcomes, the Deputy Governor said.

As machines take over routine tasks, human judgement becomes indispensable — validating a model, assessing its outcome, and stopping it when it begins to go rogue. This shift requires institutions to reskill and grow their capability, he added. Murmu observed that such growth is not merely the growth of a bank's balance sheet but the emergence of a stronger, more capable financial system that supports customers and the economy.

Murmu described "intelligence" as having a wider connotation than artificial intelligence alone, outlining four symbiotic levels: analytical intelligence of data, models, and technology where AI belongs; human intelligence of experience, knowledge, and judgement; governance intelligence — the ability of boards and senior management to oversee an institution wisely; and collective intelligence that emerges when information is pooled across banks. The value lies less in any one of these than in how well they are combined, he said. Murmu underscored that banks must stay responsive to shifts in technology, consumer behaviour, business models, and the wider economy to meet changing needs at scale, building skills ahead of the activity rather than after it. He also noted that the RBI has migrated to a new commenting platform, with users able to access older comments by logging into their accounts on Vuukle.