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Second, for innovation to thrive, we need to build the models and the GPU cloud as well as access to patient capital,
infrastructure needed for a globally competitive AI fast-track patent approvals, mentorship, and industry links.
ecosystem. An AI boom depends on three things: large
amounts of data, mega computing power to process it, and Third, India should drive scalable adoption of AI across
budgets to afford it. India must invest in building its sectors. We should build a responsible AI stack with our
capabilities, including: know-how to accelerate adoption across core sectors. India
should also set up a sand-box for responsible usage cases.
Foundation models: Invest in the development and
promotion of large trustworthy AI models that will address Lastly, we need a pro-innovation policy formulation that
our language diversity and our cultural context. catalyses responsible and ethical AI usage and creation.
India should develop a tailored approach that aligns existing
Computing access: Set up a national GPU Cloud with at least laws, identifies gaps and establishes a governance
Exaflop AI capacity and around 25,000 A100 GPUs or above. framework to manage risk and foster innovation. This will
This could be done by the government in partnership with help protect us against potential harm while driving our
industry players by setting up such infrastructure under advancement and economic growth.
incentive programmes and recovering the running cost from
users over, say, a 10-year period, with subsidized pricing for While the world worries about what AI could do, we believe
Indian academia and startups. India can and must show what AI should do as a force for
good. With our young talent, tech know-how and a strong
Special economic AI clusters: Create virtual AI clusters for core commitment to leverage technology as an equalizer, India
sectors like healthcare, agriculture, energy, manufacturing, must lead a global shift from Artificial Intelligence to
defence, etc, to turbocharge innovation and product Human–Centric Augmented Intelligence that is designed to
development. Each cluster could provide access to foundation make the world better. (Source: Mint)

Business Continuity Planning: Since after the global India the opportunity to cement its position as the global
financial crisis, regulators including the Federal Reserve have leader in Fintech.
required banks under their supervision to submit "business
Recently, the National Institution for Transforming India ("NITI
continuity plans" (BCPs) in order to game out "an exit
Aayog") has released a discussion paper titled Digital Banks
strategy" for depositors and other creditors to the bank, in
A Proposal for Licensing & Regulatory Regime for India
the event of bank failure or winding down of business for
("Licensing Framework"). The Discussion Paper has tried to
other reasons.
resolve some of the above issues by the introduction of a full-
Products and services: Subject to asset and deposit limits stack digital bank license proposal, that would mitigate the
gaps in the existing Neo Bank Model. The Licensing
and other restrictions (including for eg, number of
Framework offers a road map and template for digital bank
customers), a Digital Business bank may potentially offer all
licensing i.e. that would help in reinventing the banking
banking services in the restricted phase.
ecosystem and mitigating the deepening challenges of
Conclusion financial inclusion. However, certain practical and regulatory
issues and issues of the stakeholders would need to be
India's public digital infrastructure, especially UPI has
addressed, for which the RBI would have to propose detailed
successfully demonstrated how to challenge established
and comprehensive licensing and operational guidelines.
incumbents. As pointed out in the opening section, UPI
transactions measured have surpassed Rs. 4 trillion in value.
References:
Aadhaar authentications have passed 55 trillion. Finally,
www.niti.gov.in
India is at the cusp of operationalizing its own Open banking
www.rbi.org.in
framework. These indices demonstrate India has the
technology stack to fully facilitate DBs. Creating a blue-print economic times
for digital banking regulatory framework & policy offers India today

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