RBI Deputy Governor Patra calls for evolving deposit insurance systems to address financial innovation and climate change risks.

RBI Deputy Governor Michael Patra emphasized the need for evolving deposit insurance systems to address challenges posed by rapid financial innovation and climate change. He highlighted the threats of cyber risks, accelerated financial instability, tokenized deposits, and digitalization of financial services in shaping the future of deposit insurance. Patra also urged deposit insurers and financial safety net participants to establish frameworks for managing the failure of deposit-taking institutions and preventing contagion amidst the rapid digitization of financial transactions.

August 13, 2024
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