swaminathan j : the board's role in navigating transformation special address by mr swaminathan j, deputy governor of the reserve bank of india, at the conference of directors of private sector banks, mumbai, 18 november 2024. * * * respected governor, reserve bank of india, deputy governor shri m rajeshwar rao, chairmen, md ceos, whole time directors and distinguished members of the board of private sector banks, colleagues from rbi, ladies, and gentlemen. a very good morning to all of you. it is indeed an honour to speak before you today. conferences such as these provide an invaluable platform for supervisors and banks to understand each other's perspectives. we are navigating a new reality that is redefining the dynamics of the industry. the banking industry has witnessed several technology transformations in the past, however, the current transformation is unprecedented in its pace and scale, driven by advanced technologies like artificial intelligence and cloud computing. unlike past shifts, which focused on digitizing existing processes and operational efficiency, today's transformation places the customer experience at the centre - offering instant, personalized services, not just at the branches, but through mobile apps and digital platforms. this transformation, while promising and most welcome, brings significant risks for banks. increased digital transactions expose banks to greater liquidity risks and cybersecurity threats, while the integration of new technologies heightens operational risks. growing reliance on third - party providers adds dependency risks, and expanding customer data collection demands stricter data privacy controls. further, these rapid technological advancements require frequent updates coupled with the need for specialized talent. at the same time, customers'expectations have grown ; they demand seamless service with minimal downtime. moreover, today's customers are increasingly financially savvy, often willing to take some risk and experiment alternate avenues of investment as opposed to confining themselves to traditional bank deposits. this is where the role of the board of directors becomes essential. your leadership and governance are central to navigating these changes. in my speech today, i would like to discuss what it means to be part of a sound, transformative board - one that can harness change effectively, address risks strategically, and reinforce resilience across the organization. today i would like to touch upon seven aspects which i feel the boards should keep in mind. 1. fostering innovation in today's world, it is essential for banks to be innovative, and that goes

may be implemented more efficiently if private sector companies, with specialist expertise, invest in, and manage the project and bear the risks that the project will not be completed on time and within budget. these are important advantages, not least because project implementation capacity is weak in uganda and some other countries in the region. however, it is a misperception that ppps reduce the fiscal burden on the government over the long term ; instead they usually only extend the time frame over which the fiscal costs are incurred. ppps in many countries have bis central bankers ’ speeches also entailed substantial quasi fiscal liabilities because of implicit or explicit public guarantees given to private investors. ppps should be one of the options considered by governments for developing infrastructure but they should not be seen as a panacea for a shortage of budgetary resources. thank you very much for listening. bis central bankers ’ speeches