Speaking at CNBC-TV18’s Banking Transformation Summit in Mumbai, the Deputy Governor urged banks to make resilience part of their operating design. The message was to prepare for expansion early, rather than repair weaknesses after business has grown.

Rising transaction volumes and a wider customer base can put pressure on systems that currently work well. Banks therefore need timely investment in technology, working processes and supervision. Innovation, he argued, should strengthen a bank’s ability to withstand problems, not simply add products.

Employees remain central to that effort. As automation takes over routine tasks, officers will need stronger judgment to assess digital outputs, question questionable results and intervene when systems malfunction. Training should help staff understand new tools instead of accepting computer-generated decisions without scrutiny.

The Deputy Governor described four complementary forms of intelligence: analytical capabilities drawing on data and AI; employees’ knowledge and experience; direction from boards and senior management; and information-sharing across banks. Together, these can support both individual institutions and the wider banking system.

Banks were also urged to develop skills before entering new activities, strengthen oversight of outside service providers and connect technology changes with financial outcomes. The broader goal is growth that improves service to customers and the economy without leaving institutions vulnerable under pressure.