Allow me to jog an unpleasant memory from two years ago. That’s right, around the time the world hit ‘shut down’ due to the Covid-19 pandemic. With that came a whole new set of rules. I’m sure you remember them—wash your hands (repeat), wear a mask (and cover your nose), maintain at least six feet distance (two km is best), 14-days quarantines for the infected (and half a dozen tests), etc. etc. We were all thrown into a tizzy because the world as we knew it changed almost overnight. Remember how you felt—scared, confused, anxious, frustrated, powerless? Well, that’s exactly how Indian banks are feeling right now. That’s because the Reserve Bank of India (RBI) has been flexing its tech chops, raising its watchdog game in the past few years. Especially when it comes to IT compliances and regulations. What’s changed? For starters, the number of inspections has shot up (and so has the number of banks penalised: from 14 in 2018 to 54 in 2021). Moreover, the intensity of these inspections has risen (“Now, we are asked questions on all the fields of data collected, where we store it, and even on who all has access to it,” says one large private bank). To top it off, the RBI now insists its guidelines be treated as rules, grumble bankers. “So what? Looks like the regulator has the customer’s best interest at heart,” I hear you say. Yes, and they did while implementing a slew of Covid-19 safety guidelines, too. But that didn’t mean we took to them like fish to water. And neither have the banks now. Nor is it as simple as adapting to the new regime. There are repercussions, ones that could affect our banking experience. “The regulator’s wariness has led to the banks putting compliance at the top of their to-do lists, especially when it comes to new products. Only after that are other questions—such as whether the product is a good fit for its existing customers or its business practices—are evaluated, say bankers and vendors who work with banks, It’s a nuanced story of what happens when the RBI’s bite becomes as bad as its bark. It’s a story that could affect you