Utkarsh 2029: RBI targets global payments push, AI adoption in new 3-year strategy

The Reserve Bank of India (RBI) on Friday outlined an ambitious three-year roadmap to expand the global footprint of its payment systems, step up the use of artificial intelligence, and simplify regulations, as it seeks to position itself as a “world-class full-service” central bank.

In its medium-term strategy framework “Utkarsh 2029”, the RBI said it would focus on internationalising the rupee, expanding the reach of the Unified Payments Interface (UPI) overseas, and scaling up cross-border use of central bank digital currency (CBDC).

Governor Sanjay Malhotra said the framework is designed to respond to rapid technological shifts and evolving global dynamics.

“In an era marked by rapid technological advancements, evolving geopolitical dynamics, and emerging climate-related imperatives, Utkarsh 2029 focuses on… upgrading technology and upskilling the staff,” he said in the foreword.

He added that the strategy aims to “expand and globalise the reach of payment systems” and “position RBI as a world-class full-service central bank.”

The plan, covering fiscal years 2026 to 2029, comes as India pushes to strengthen its role in global financial systems and reduce friction in cross-border transactions.

The RBI also plans to “develop frameworks for use of emerging technologies such as AI and Quantum” and build an indigenous artificial intelligence tool based on a “purpose-built” large language model to strengthen supervision and internal processes, the document showed.

The central bank said that “all internal processes shall be end-to-end digitalised” while interfaces with regulated entities and citizens will shift to electronic modes.

The banking regulator will “review, rationalise, and simplify instructions periodically” to reduce compliance burden on regulated entities and improve ease of doing business.

The framework also focuses on deepening financial markets by improving transparency in government securities, increasing retail participation, and reducing turnaround time in auctions.

The plan is built around six strategic pillars with 49 deliverables, including regulation, inclusion, market development, technology, organisational capacity and global integration.