The Reserve Bank of India (RBI) has unveiled a comprehensive agenda for FY 2026-27 that includes launching its next-generation core banking system e-Kuber 3.0, undertaking the first comprehensive review of the RBI Act since 1934, and building a unified enterprise platform for internal operations. The RBI agenda 2026-27 e-Kuber initiative represents the most significant technology and regulatory overhaul at India’s central bank in over a decade, positioning the institution for the demands of a $5 trillion economy.
The agenda was outlined in the RBI’s Annual Report for 2025-26, released by Governor Sanjay Malhotra in June 2026. The RBI Act review aims to align the central bank’s legal framework with modern monetary policy operations, digital currency issuance, and the expanded scope of financial regulation covering banks, NBFCs, and fintech platforms under a consolidated supervision model.
What Is e-Kuber 3.0 and Why Does It Matter for Indian Banking?
e-Kuber is the RBI’s core banking solution that handles government securities settlement, liquidity management operations including LAF and MSF, and interbank money market transactions. e-Kuber 3.0 is a ground-up rebuild of the system launched in 2012, targeting real-time gross settlement speeds below 5 seconds, AI-assisted fraud detection, and seamless integration with the RBI’s digital rupee (e-Rupee) infrastructure. The new system will also support an alternative payment system to SWIFT for domestic interbank settlement, reducing India’s dependence on dollar-denominated messaging systems for INR transactions. Full implementation is targeted for completion by Q1 2027, with a parallel running phase of the legacy system through 2026-27.
What Does the RBI Act Review Mean for Banks and NBFCs?
The RBI Act, 1934, was last comprehensively amended in 2016 and does not fully address digital currencies, consolidated fintech regulation, or modern resolution frameworks. The proposed review covers three priority areas: statutory powers for regulating digital assets and CBDCs; an enhanced resolution framework for troubled banks and NBFCs; and an updated monetary policy framework codifying the inflation targeting mandate with greater legislative certainty. Bank of Baroda’s treasury research estimates the review could result in 12-18 months of legislative drafting before a bill is introduced in Parliament. Of note: 13 NBFCs voluntarily surrendered their registrations in Q1 FY27, partly due to compliance rationalisation under anticipated new framework provisions.
Market and Banking Sector Reaction
Banking sector stocks responded positively to the e-Kuber 3.0 announcement, with technology-linked banking indices gaining 1.8% on the day of the Annual Report release. Infosys and TCS — both likely technology implementation partners — received analyst upgrades citing potential large government IT contracts from the project. The bond market has welcomed the RBI Act review signal, interpreting greater legislative clarity on inflation targeting as reducing long-term rate uncertainty. Rating agencies have placed India’s banking stability score on positive watch, given the stronger implied resolution backstop that an updated RBI Act would provide for depositors and creditors.
What Happens Next?
e-Kuber 3.0 vendor selection is expected to complete by September 2026, with development and parallel-run phases following through 2026-27. The RBI Act review committee will submit its preliminary report by December 2026. The alternative domestic payment system — intended as an INR-settlement substitute for SWIFT among Indian banks — is targeted for pilot launch with select banks by March 2027. RBI Deputy Governor Swaminathan Janakiraman, whose term was extended by two years from June 26, 2026, will oversee the regulation and supervision domain through the entire transition period.
Frequently Asked Questions
What is e-Kuber 3.0?
e-Kuber 3.0 is the next-generation core banking system being built by the Reserve Bank of India to replace the current e-Kuber platform launched in 2012. It will handle government securities settlement, LAF operations, and digital rupee infrastructure with real-time sub-5-second speeds and AI-assisted fraud detection, targeting launch by Q1 2027.
Why is the RBI reviewing the RBI Act for the first time since 1934?
The RBI Act, 1934, was last comprehensively updated in 2016 and does not fully address digital currencies, fintech regulation, or modern bank resolution frameworks. The review aims to align the Act with the realities of a digital economy, consolidated financial supervision, and the RBI’s expanded role in CBDC issuance and oversight of new financial entities.
Who is the current Governor of the Reserve Bank of India?
Sanjay Malhotra is the current Governor of the Reserve Bank of India. He released the RBI Annual Report 2025-26 in June 2026 and has overseen key recent measures including the FCNR-B ceiling relaxation, the current account surplus management, and the announcement of the FY27 institutional agenda including e-Kuber 3.0.
Leave a comment