RBI asks banks to embed empathy into service delivery

MUMBAI: Reserve Bank of India deputy governor Swaminathan J has called upon banks to embed empathy into service delivery and has said that highest purpose of innovation should be inclusion and not the other way around. “While access to financial services has improved significantly in recent years, the challenge now lies in promoting active usage and strengthening service quality,” he noted, calling for empathy, trust, and responsibility to be built into every layer of India’s digital finance architecture.Speaking at the World Savings and Retail Banking Institute (WSBI) study visit to State Bank of India on Oct 6, Swaminathan said that India’s decade-long journey toward inclusion had been a collective national mission involving the Govt, the central bank, and the banking sector.

“The real task lies in deepening usage, improving quality, and building lasting trust,” he said.The deputy governor pointed out that India’s Financial Inclusion Index had improved sharply to 67 in March 2025 from 43.4 in 2017, reflecting gains in access, usage, and quality. But he warned that the next phase must go beyond numbers. “Achieving this requires more than technology; it calls for products tailored to diverse needs and limitations, supported by human interfaces that build trust and confidence,” he said, adding that “embedding empathy into service delivery” is crucial to making inclusion meaningful.

He highlighted how India’s digital public infrastructure, centered on the India Stack, has enabled secure and affordable access through Aadhaar, DigiLocker, and the Account Aggregator framework. “Among these layers, the Unified Payments Interface has emerged as the flagship success story,” Swaminathan said, calling it the most visible part of a broader transformation that includes NEFT, RTGS, and Bharat Bill Payment System.

“Together, these systems form a layered, resilient, and inclusive architecture,” he said.The next frontier, he added, lies in credit. “Just as UPI made payments universal, the Unified Lending Interface has the potential to mark a turning point in how affordable credit is accessed and delivered at scale,” he said. Digital platforms are also extending inclusion to insurance and pensions, while cross-border UPI linkages are making remittances faster and cheaper.Outlining the RBI’s role, Swaminathan said, “We seek to foster an environment where innovation can flourish responsibly.” He cited regulatory sandboxes, the Innovation Hub, and digital finance frameworks as examples of enabling tools. “Innovation and safety are not opposing goals; when balanced well, they reinforce each other and build lasting trust,” he said. “India’s journey shows that when innovation meets inclusion, transformation becomes inevitable.”