RBI Deputy Governor Dismisses MDR Concerns, Emphasizes Board Accountability for AI
· Business · Economic Times, LiveMint
Reserve Bank of India Deputy Governor SC Murmu addressed industry concerns regarding Merchant Discount Rate costs at a Mumbai conclave on Friday. He dismissed fears that evolving fee structures would hinder the adoption of digital payments, describing the current apprehension as a temporary reaction to a shift in cost recovery methods. Murmu also rejected the notion of a cash paradox, explaining that while digital transactions are replacing cash as a payment vehicle, physical currency remains a vital store of value. He further stated that corporate boards must take direct accountability for safety and governance in an increasingly automated, AI-driven financial landscape. The Deputy Governor confirmed that the central bank remains optimistic about the trajectory of digital payment growth in India.
Why it matters
The RBI's stance signals that digital payment costs will likely evolve without stalling growth, while placing the onus of AI-related financial risks squarely on corporate leadership.
Read the original report — Economic Times
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