The Aryavarth Express Jammu: Reserve Bank of India (RBI) Deputy Governor Swaminathan J outlined a three-part “career compass” for management students at Indian Institute of Management Jammu, urging them to build leadership rooted in discipline, integrity and customer focus as India moves towards its Viksit Bharat 2047 vision.
Delivering the keynote address at the Third International Finance and Accounting Conference (IFAC) at IIM Jammu last week, Swaminathan emphasised that leadership in finance goes beyond intelligence.
“Leadership in finance is not just about intelligence. It is about judgement. It is about discipline. It is about what you choose to reward, what you choose to question, and what you choose to fix early,” he said.
Three Principles for Future Leaders
Introducing his “career compass,” the Deputy Governor highlighted three core principles: Respect the customer, Respect the financials, and Respect governance.
On respecting the customer, he said sustainable business success depends on prioritising customer outcomes. “In the long run, customer outcomes are the strongest business strategy. They reduce disputes, lower reputational risk, and sustain participation in formal finance,” he noted, cautioning against hidden clauses, unclear fees and products sold to meet targets rather than genuine needs.
The second principle—respecting the financials—requires leaders to examine financial statements carefully to assess asset quality and long-term sustainability. “Financial statements tell you what is sustainable and what is not. Look beyond profits to the quality of assets, stability of funding, adequacy of buffers and concentration of exposures. Strength is built in good times and revealed in stress,” he said.
The third principle, respecting governance, addresses institutional accountability. Swaminathan observed that many financial failures stem not from lack of knowledge but from governance lapses. “People knew what was going wrong but did not speak up, or no one listened. Incentives sometimes push people to ignore red flags,” he said.
Asking the Right Questions
He encouraged students to cultivate the habit of asking critical risk-related questions such as: What could break? What assumptions are being made? What happens if customer cash flows decline or systems fail?
“These are not pessimistic questions; they are the mark of a prudent leader. One of the most valuable skills in finance is not giving answers, but asking the right questions at the right time,” he added.
Concluding his address, the RBI Deputy Governor said India’s 2047 aspirations would require leaders who can balance performance with principles and ambition with discipline.
“If we align capital with capability, innovation with safeguards, and inclusion with well-being, the aspiration of 2047 will steadily become a lived reality for millions,” he said.
