MDR fears groundless, AI accountability lies with boards: RBI Dy Governor SC Murmu

During the Financial Market Conclave in Mumbai, Reserve Bank of India Deputy Governor SC Murmu addressed industry concerns over Merchant Discount Rate (MDR) costs and their potential impact on digital payment adoption. He dismissed fears that changes to MDR structures would impede India's digital growth, while providing clarity on cash circulation, central bank regulation speed, fintech safety, and corporate board accountability in an automated environment.

Murmu assured that initial apprehension regarding higher recovery costs would not lead to a return to physical currency. He elaborated that cash serves dual purposes in the economy, functioning as both a transaction tool and a store of value, which is not diminishing over time. Regarding the fast pace of central bank circulars, Murmu clarified that issuing over 600 circulars and amendments annually reflected a structured regulatory streamlining effort rather than deregulation.

Lastly, on AI governance, Murmu emphasized that accountability for artificial intelligence deployment lies with corporate boards, regardless of whether machines supplement or replace human actions.