The Reserve Bank of India (RBI) on Friday outlined its medium-term strategy for April 2026 to March 2029 under the Utkarsh 2029 framework, aiming to strengthen its position as a world-class, full-service central bank. Under the framework, the central bank will focus on long-term initiatives such as Project Sa-Mudra to modernise currency management, expansion of central bank digital currency (CBDC) for more efficient cross-border payments, scaling up the Unified Lending Interface (ULI) to enable inclusive credit delivery, and developing regulatory frameworks for emerging technologies such as artificial intelligence and quantum computing in the financial sector.
Additionally, under Utkarsh 2029, the RBI will build on the foundations laid under Utkarsh 2.0, including the internationalisation of the Indian rupee and the global expansion of UPI to transform cross-border payments. Aligned with the RBI’s April–March financial year, the framework seeks to improve resource allocation and utilisation through activity-based budgeting.
“In an era marked by rapid technological advancements, evolving geopolitical dynamics, and emerging climate-related imperatives, Utkarsh 2029 focuses on areas such as simplifying regulations, adopting a customer-centric approach, deepening financial markets, upgrading technology, and upskilling staff,” said Sanjay Malhotra, Governor, RBI.
“It also endeavours to expand and globalise the reach of payment systems, strengthen the financial ecosystem, establish robust metrics to benchmark the services offered by RBI, and thereby position RBI as a world-class full-service central bank,” he added.
The Utkarsh 2029 framework encompasses six strategy pillars: robust regulations; customer centricity and inclusive finance; competitive markets; effective technology; future-ready organisation; and global India.
As part of its regulatory approach, the central bank said it will periodically review and rationalise its instructions, including master directions and circulars, to align with evolving economic conditions and reduce the compliance burden for regulated entities (REs). The move is aimed at promoting ease of doing business, minimising procedural redundancies, and encouraging responsible innovation across the financial ecosystem.
The RBI also plans to assess customer service standards in scheduled commercial banks and streamline grievance redressal mechanisms across all REs. By expanding the Unified Lending Interface (ULI), the central bank aims to improve access to credit, lower borrowing costs, and ensure wider financial inclusion. It also intends to strengthen system-wide contagion risk assessment, reflecting growing interconnectedness within the financial sector. Periodic evaluation of services under the Citizen’s Charter will further reinforce accountability and public service delivery.
Further, the central bank will focus on the development of competitive financial markets. The RBI aims to modernise market infrastructure through greater automation, expanded central clearing, and improved pricing transparency in government securities. Measures to reduce auction turnaround times and enhance retail participation in financial markets are also on the agenda.
The RBI also plans to fully digitise its internal processes and transition to electronic interfaces for interactions with regulated entities and the public. Ongoing initiatives include upgrades to foreign exchange management systems, grievance redressal platforms, and currency management operations. The central bank is also developing advanced supervisory tools, an indigenous artificial intelligence system based on a purpose-built large language model, and next-generation platforms such as e-Kuber 3.0. In parallel, it will introduce frameworks for the use of AI, expand asset tokenisation, and establish digital and AI sandboxes to promote responsible innovation.
Institutionally, the RBI aims to evolve into a future-ready organisation by investing in workforce upskilling, enhancing internal communication, and embedding sustainability and climate considerations into its policy and operational framework.