New Delhi, Jan. 12 -- Supervision in the digital era will be less forgiving of episodic compliance, outsourced accountability and opaque algorithms, Reserve Bank of India (RBI) deputy governor Swaminathan J. said on Monday, in a pointed message to banks and other regulated entities.

Speaking at the third annual global conference of the RBI's College of Supervisors in Mumbai, Swaminathan outlined three expectations that he said supervised entities must internalize, as banking becomes more digital, interconnected, and fast-moving.

The first message was on compliance. Swaminathan cautioned banks against treating compliance as a quarter-end exercise, arguing that faster business and risk cycles demand continuous operational discipline and s...