RBI sets up unit for blockchain and AI to keep up with digital era

Aiming to keep pace with emerging technologies, the Reserve Bank of India (RBI) has set up a new unit to research and supervise blockchain, artificial intelligence and others, reported The Economic Times (ET), citing people. 

Although no formal announcement has been made, a chief general manager has been identified to lead the unit, said the report.

Analysts in the report said RBI is doing the right thing at a time when new technologies are set to change business models.

“Unless regulators are part of the ecosystem, and they understand what is accepted and what is not, they cannot protect the industry they regulate,” Piyush Singh, managing director, financial services, Asia-Pacific and Africa, Accenture, told ET.

Another similar initiative is opening up of a new data sciences laboratory in December, which was announced by RBI in April. 

Last month, the Supreme Court refused to grant interim relief from RBI’s banking restriction on cryptocurrencies.

The RBI had issued a circular in April to all banks and financial institutions banning them from providing any service to entities that deal with cryptocurrencies. This included transfer or receipt of money in accounts relating to purchase or sale of virtual currencies. The RBI had given a three-month window to these organisations to take necessary steps.