Financial Inclusion Beyond Bank Accounts: RBI Deputy Governor

MUMBAI:
The Indian Institute of Management Kozhikode (IIMK), in collaboration with the National Stock Exchange of India (NSE), hosted the second annual conference in Macroeconomics, Banking, and Finance on the theme, ‘Finance for Growth Amid Creative Disruptions.’ Organized by Uruppika, IIMK’s Centre of Excellence in Macroeconomics, Banking, and Finance, the event brought together leading policymakers, industry experts, and academics to explore the evolving financial landscape.

In his inaugural address, M. Rajeshwar Rao, Deputy Governor of the RBI, underscored the need for responsible financialization, cautioning against excessive borrowing fuelled by digital lending platforms. He emphasized the surge in capital market activity, stressing the importance of balancing innovation with financial stability to ensure long-term economic stability.

“As the financial world evolves, two critical questions arise: Can businesses innovate fast enough to survive disruptive waves, and can finance be democratized for shared prosperity? Education must bridge the gap between business and finance to address these challenges. Wealth without wisdom leads to greed and instability, while wisdom without wealth leads to stagnation. A strong financial system must integrate both for sustainable growth. In modern terms, financial literacy is the bridge between wealth and wisdom—nations that invest in financial education create long-term economic stability,” said Prof. Debashis Chatterjee, Director, IIM Kozhikode.

Sriram Krishnan, Chief Business Development Officer, NSE gave a welcome address on how financial systems can adopt, evolve and be resilient during crisis.

Prof. Mridul Saggar, Head, Uruppika, – Centre for Macroeconomics, Banking & Finance said, “Big bang disruptions are coming in a myriad way. AI can propel hitherto languishing multi factor productivity growth. Climate finance can foster green jobs and make our planet more livable. Institutional finance is disrupted by fast-paced electronic markets but may later be replaced by last-mile differentiated finance, helped by generative AI. Finance will now deliver but needs reinforced focus on macro-financial stability. The speed at which internet and mobile banking deposits (IMD) can fly have to be sensibly calculated in the run off factors that should balance the costs of regulation with the need to avert potential costs of banking fragilities that have systemic implications.”

Debadatta Chand, MD & CEO, Bank of Baroda, emphasized the need to strengthen India’s financial ecosystem to sustain economic growth. He highlighted key measures by the banking sector to ensure liquidity and financial stability amid global economic uncertainties. He also outlined the bank’s digital transformation strategy to enhance customer engagement and streamline operations.
Rajneesh Karnatak, MD & CEO, Bank of India, highlighted the role of Indian banks in promoting financial inclusion and sustaining economic growth. He also discussed recent government initiatives aimed at improving credit access for small businesses and rural sectors. Additionally, the bank stressed the importance of robust risk management frameworks to counter global financial volatility.
Hitendra Dave, CEO, HSBC (India), underscored India’s resilience and growth in the global financial landscape. He pointed out the increasing role of foreign investments and the need for regulatory reforms to facilitate smoother capital inflows. The discussion also touched on the evolving fintech ecosystem and the role of technology in redefining traditional banking models.

Srinivasan Varadarajan, Chairman, Union Bank of India, focused on the need for stronger corporate governance and risk assessment in the banking sector. He highlighted innovative lending practices and strategies to enhance credit disbursement to priority sectors. While also stressing the significance of ESG (Environmental, Social, and Governance) considerations in shaping the future of Indian banking.
The conference featured a distinguished line-up of industry leaders, including:

Regulators & Policymakers: M. Rajeshwar Rao (Deputy Governor, RBI), Ananth Narayan (Whole Time Member, SEBI), Ranil Salgado (Senior IMF Representative, India), Saugata Bhattacharya (RBI MPC Member)
Banking & Finance: Debadatta Chand (MD & CEO, Bank of Baroda), Hitendra Dave (CEO, HSBC India), Rajneesh Karnatak (MD & CEO, Bank of India), Srinivasan Varadarajan (Chairman, Union Bank of India),
Investment & Capital Markets: Rakesh Singh (Group Head, Investment Banking, HDFC Bank), Nilesh Shah (MD, Kotak Mutual Fund), Neeraj Gambhir (Group Executive, Treasury, Markets & Wholesale Banking, Axis Bank), Subodh Rai (MD, CRISIL Ratings)
Infrastructure Financing – Suresh Goyal (MD & CEO, NHAI InvIT), Rajkiran Rai (MD, NaBFID), Govindan Ramaswamy (Senior Vice President – Corporate Finance & Chief Risk Officer, Larsen & Toubro Limited)
Technology & Fintech: Manish Gupta (Google DeepMind India), Rohini Srivathsa (CTO, Microsoft India & South Asia), Rajan Bajaj (Founder, Slice)
Academia & Research: Poonam Gupta (NCAER), Tirthankar Patnaik (Chief Economist, NSE), Dr. Ranil Salgado (Senior IMF Representative India)
Besides above stalwarts from the financial ecosystem of India IIMK faculty members Prof. Rudra Sensarma, Prof. Abhilash Nair, Prof. Ashok Thomas and Prof. Aravind Sampath lend their thoughts to topics like Transformative Finance for Growth Amid Disruptions, Harnessing New Technologies for Creative Disruption, Future of Capital Markets, Infrastructure Financing, Macro-financial Stability in the Era of Disruptions.

The conference concluded with a fireside chat between Former RBI Governor D. Subbarao and Ira Duggal, who examined whether the current economic slowdown is cyclical or structural.