"Next 25 years will be about intelligent scale" in financial markets: SBI Chairman

He spoke on the sidelines of the 25th-anniversary celebration of the Clearing Corporation of India Limited (CCIL) in Mumbai.

Addressing the event, the SBI Chairman stated, "The next 25 years will not just be about scale, but about intelligent scale. Financial markets are now evolving in the fastest ways possible, becoming more interconnected and complex."

He also noted that risks will develop in ways that are less visible but potentially more systemic.

Stating that Artificial Intelligence (AI) will be a defining force, he said, "Artificial Intelligence will be a defining force in this transformation. It has the potential to significantly enhance risk management, improve operational efficiency, and enable real-time management surveillance."

"By analysing vast datasets of historical transactions, counterparty behaviour, and market conditions, AI can enable dynamic, real-time risk assessment and more accurate predictions of counterparty exposures," he added.

Concluding his address, he stressed the evolving financial landscape, emphasising the importance of AI, global integration, and navigating new frontiers such as digital assets.

Earlier, the Reserve Bank of India (RBI) rolled back restrictions on offshore non-deliverable forward (NDF) trading as the volatility in the rupee market eased, Deputy Governor T Rabi Sankar said on Wednesday, stressing that the measures were temporary and aimed at managing excessive market fluctuations.

Speaking to the media on the sidelines of the 25th year celebration of Clearing Corporation of India Limited, Sankar said the earlier restrictions were introduced due to heightened volatility and were not linked to the direction of the rupee.

"All that was done was to deal with a temporary event that created a large volatility in the market. Once that is taken care of, we should be back on track with what we do. Our idea is that any user anywhere in the world who has an exposure to risk to the rupee should be able to access any product that is available. It was a temporary measure that had to be rolled back sometime. We did it now," he said.

The RBI had imposed restrictions on April 1, 2026, on offshore NDF trading. These have now been partially rolled back, allowing authorised dealers to offer rupee derivatives to clients again. Banks can also rebook cancelled contracts, although a cap of USD 100 million on open positions continues to remain in place to manage volatility and prevent excessive speculation.

Sankar said the central bank remains committed to developing a unified global market for the dollar-rupee and to the long-term goal of rupee internationalisation. (ANI)