Deputy Governor of Reserve Bank of India Swaminathan J speaking at the 3rd International Finance and Accounting Conference at Indian Institute of Management (IIM) Jammu

Speed is not always a virtue in finance as it sometimes hides weakness, according to Swaminathan J, Deputy Governor, RBI.

“A product can reach ten million people within months. A credit model can approve loans in seconds. A payments platform can process massive volumes,” he said.

“This scale is powerful, but it also means that harm can scale quickly if design is poor, controls are weak, or incentives are misaligned,” Swaminathan said in his recent speech at the 3r^d International Finance and Accounting Conference at the Indian Institute of Management (IIM), Jammu.

He noted that technology is a force multiplier, which amplifies good design as well as bad design.

“Eventually, the future will reward institutions that can combine efficiency and innovation with prudence, and growth with resilience,” the Deputy Governor said.

Swaminathan underscored that in finance, small compromises can become large losses.

“There will be moments where the easy path is tempting. A shortcut in due diligence; A small compromise on disclosure; A “temporary” relaxation of standards; or A target that encourages aggressive sales. These compromises may look small in the moment, but they compound,” he cautioned.

He emphasised that finance needs numbers, but more importantly, it also needs integrity in numbers.

“In the age of dashboards and AI, it is easy to forget that accounting is a discipline of clarity. It forces us to recognise losses, admit uncertainty, value assets prudently, and explain performance in a way that others can rely on,” he added

“In many organisations, the true difference between a good institution and a weak one is not how fast it grows, but how truthfully it measures itself,” he said.

The Deputy Governor observed that many problems in finance start small, sometimes, quite literally, in the ‘small print’.

“A fee not explained clearly; A clause buried in the terms; A loan that is easy to take but hard to repay; or A product sold to meet a target, not to meet a need,” he said.

“Over time, these small problems become big issues. They show up as complaints, disputes, defaults, and customer harm,” he said.

Therefore, finance professionals should endeavour to design and sell products that are suitable, transparent, and fair. The best leaders prevent harm before it occurs. They do not wait for problems to become headlines.

Published on March 4, 2026

Markets endured a brutal session on Wednesday as escalating hostilities under “Operation Epic Fury” involving the United States, Israel, and Iran triggered a broad risk-off selloff, driving the rupee to an unprecedented low and sending MCX gold surging past ₹1.63 lakh.

The Sensex crashed 1,122.66 points, or 1.40 per cent, to close at 79,116.19, while the Nifty 50 shed 385.20 points, or 1.55 per cent, to end at 24,480.50. The rupee breached the psychological ₹92 mark for the first time, touching an all-time low of ₹92.30 against the US dollar, having opened at 92.05. India VIX surged 22.6 per cent to 20.83 — its highest since May 2025 — as Brent crude pushed toward $85 per barrel on fears of disruption to the Strait of Hormuz.

Broader markets were hit harder. The Nifty Next 50 tumbled 2.70 per cent, the Nifty Midcap 100 fell 2.16 per cent, and the Nifty Smallcap 100 slipped 2.11 per cent. Nifty Bank dropped 1.81 per cent to 58,755.25. Of 4,433 stocks traded on the BSE, only 1,053 advanced against 3,245 declines, with 719 stocks hitting 52-week lows.

Ponmudi R, CEO of Enrich Money, captured the global context: “…South Korea’s KOSPI plunged nearly 12 per cent, triggering circuit breakers, while Thailand’s SET index declined over 8 per cent, highlighting the intensity of the global risk aversion.”

On the Nifty 50, only four stocks ended in the green. Bharti Airtel rose 1.88 per cent to ₹1,908.50, Coal India gained 1.85 per cent to ₹434.15, Infosys added 1.33 per cent to ₹1,306.10, and Tech Mahindra edged up 0.15 per cent to ₹1,347.40. Tata Steel was the top loser, plunging 7.08 per cent to ₹196.06, followed by TMPV, down 5.29 per cent to ₹351.00, SBI Life Insurance, down 4.98 per cent to ₹1,931.00, JSW Steel, down 4.67 per cent to ₹1,208.10, and Larsen & Toubro, down 4.54 per cent to ₹3,882.00. Nifty Metal was the worst sectoral performer, shedding over 4 per cent, while Nifty IT was the sole gainer, up a modest 0.11 per cent, buoyed by the rupee’s slide.

MCX gold surged 1.50 per cent to above ₹1.63 lakh, with Indian spot gold touching ₹1.70 lakh, while silver jumped 2.81 per cent. Aamir Makda, Commodity and Currency Analyst at Choice Broking, called it “…a classic flight-to-safety response.” Anindya Banerjee, Head of Currency and Commodity Research at Kotak Securities, flagged the Strait of Hormuz as the key variable: “…As long as crude oil prices remain elevated, the rupee could continue to face depreciation pressures.” He sees USDINR trading in a near-term range of 91–93 and expects the RBI to intervene to curb excessive volatility.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, warned that Nifty has broken decisively below the 24,570–24,600 support zone, with the RSI near 30 signalling bearish momentum. Immediate support sits at 24,300–24,350; a breakdown there risks a slide toward 24,100 and 23,800. Vinod Nair, Head of Research at Geojit Investments Limited, advised restraint: “…We advise investors to avoid panic sell-off and adopt a disciplined, long-term perspective…as current price levels may offer a strategic entry point for the medium to long term.” For Bank Nifty, the 58,200–58,100 zone is the support to watch Thursday, with 59,200–59,300 as immediate resistance.

Published on March 4, 2026

Russia is ready to divert oil to India to ‌offset Middle East supply disruptions, with
about 9.5 million barrels of Russian crude in ​vessels near
Indian waters and able to arrive within weeks, an industry
source with direct ⁠knowledge told Reuters.

The source declined to say where the non-Russian fleet
cargoes were originally headed but said they could deliver to
India within weeks, giving refiners rapid relief.

India is vulnerable to supply shocks, with crude stocks
covering only about ‌25 days of demand, while refiners hold
similarly limited inventories of gasoil, gasoline and liquefied
petroleum gas.

An Indian government source said New Delhi was scouting for
alternative supply to prepare for ‌continuing conflict in the
Middle East beyond 10–15 days.

FORCED TO SEEK ALTERNATIVE SUPPLY

The disruption has immediate ‌market ⁠consequences, with about
40% of India’s crude imports moving through the Strait of
Hormuz, the ⁠world’s most vital oil export route, the source
said, and the near-closure of the route has compelled the No.3
oil consumer to seek alternatives.

Indian refiners process about 5.6 million barrels per day of
crude. The Strait has become inaccessible after vessels were
struck by ​Iranian attacks that followed U.S. and Israeli ‌strikes
on Iran-based targets that commenced on Saturday.

The industry source, speaking on condition of anonymity,
said Russia was ready to help India meet up to 40% of its crude
needs.

India’s imports of Russian crude fell to about 1.1 million
barrels per day in January, the lowest since November 2022, as
New ‌Delhi sought relief from U.S. tariffs, pushing Moscow’s
share of overall oil imports down to ​21.2%, industry data
showed. The source said the share climbed back to around 30% in
February.

Indian refiners are in regular contact with traders selling
Russian crude, but any increase ⁠in intake from Moscow would
depend on guidance from the government as trade talks with the
United States continue, two refining sources said.

U.S. President Donald Trump last month agreed to drop
punitive tariffs levied on imports from ‌India over its purchase
of Russian oil, saying New Delhi had agreed to “stop buying
Russian oil.”

India has not done so, insisting its strategy was to
diversify supply in line with market conditions and “evolving
international dynamics.”

India’s foreign and oil ministries, as well as the Russian
embassy in New Delhi, did not immediately respond to a request
for comment on any higher purchases from Russia. An Indian
source said days before the Iran war that Indian companies had
not been told to shun Russian oil.

‘A SELLER’S MARKET’ FOR OIL

While Russian oil ‌has been sold at a discount to global
prices since the country invaded Ukraine in 2022, that will now
narrow as “it’s ​become a sellers’ market,” the industry source
with knowledge of Russian oil trade said.

The source said Russia was also ready to sell liquefied
natural gas to India after top ⁠supplier Qatar halted production
on Monday as the conflict widened.

Indian companies have reduced gas supplies to some
industrial customers to ⁠manage the shortfall, Reuters has
reported.

Both China and India, Asia’s biggest energy consumers,
source about half their crude imports from the Middle East, but
India holds far less in storage than ‌China and is more exposed
to regional supply shocks as Russian purchases fell under U.S.
pressure.

Trump said on Tuesday the U.S. Navy could escort oil tankers
through the Strait of Hormuz if necessary, and ​ordered the U.S.
International Development Finance Corporation to provide
political risk insurance and guarantees for Gulf shipping.

Published on March 4, 2026