The Reserve Bank of India (RBI) on Friday outlined its medium-term strategy for April 2026 to March 2029 under the Utkarsh 2029 framework, aiming to reinforce its position as a world-class, full-service central bank. The plan prioritises long-term initiatives including Project Sa-Mudra to modernise currency management, expansion of central bank digital currency (CBDC) for more efficient cross-border payments, scaling up the unified lending interface (ULI) to widen access to credit, and regulatory frameworks for emerging technologies such as artificial intelligence and quantum computing in the financial sector.
The framework builds on the Utkarsh 2.0 foundations, including the internationalisation of the rupee and the global expansion of UPI to reshape cross-border payments. Aligned with RBI’s April-March financial year, it also targets improved resource allocation through activity-based budgeting.
“In an era marked by rapid technological advancements, evolving geopolitical dynamics, and emerging climate-related imperatives, Utkarsh 2029 focuses on areas such as simplifying regulations, adopting a customer-centric approach, deepening financial markets, upgrading technology, and upskilling staff,” said Sanjay Malhotra, governor, RBI. “It also endeavours to expand and globalise the reach of payment systems, strengthen the financial ecosystem, establish robust metrics to benchmark the services offered by RBI, and thereby position RBI as a world-class full-service central bank.”
The framework rests on six pillars: Robust regulation, customer-centric and inclusive finance, competitive markets, effective technology, a future-ready organisation, and a global India focus.
The RBI said it will periodically review and rationalise instructions, including master directions and circulars, to reflect changing economic conditions and reduce compliance burdens for regulated entities, aiming to ease business processes and support responsible innovation.
It also plans to assess customer service standards in scheduled commercial banks and streamline grievance redress across regulated entities. Expansion of ULI is expected to improve credit access, lower borrowing costs and support financial inclusion. The central bank will also strengthen system-wide contagion risk assessment and periodically review services under the Citizen’s Charter to enhance accountability and public service delivery.
The RBI aims to deepen financial markets by modernising infrastructure through automation, expanding central clearing and improving price transparency in government securities. It also plans to shorten auction turnaround times and increase retail participation.
Internally, the central bank will digitise processes and expand electronic interfaces for engagement with regulated entities and the public. Ongoing initiatives include upgrading foreign exchange management systems, grievance platforms and currency operations. It is also developing advanced supervisory tools, an indigenous AI system based on a purpose-built large language model, and next-generation platforms such as e-Kuber 3.0, alongside frameworks for AI use, asset tokenisation, and digital and AI sandboxes.
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