Take a fresh look at your lifestyle.

RBI governor advised banks to strike a balance between digital and paper-based forms of communication

RBI Governor, Shaktikanta Das today said that even though shareholders’ interest is important in the business of banking, it is the interest of depositors that is even more important. Addressing the Bank of Baroda Banking Conference in Mumbai today, Mr. Das said banks are not just the custodians of shareholders’ interest but more fundamentally the trust of the depositors, who are at the very core of the banking system.

Stating that banks are expected to be permanent institutions after they obtain the regulator license, Mr. Das said banks should always remember that the funds they deploy belong to depositors and this should reflect in robust risk management, governance, and internal control systems. He said shareholders of banks must focus on long-term profitability and market valuation. The Governor said such an approach will usher in a new paradigm of banking and will stand in good stead for our economy.

Emphasizing that the banking sector is going through a period of churning and competition from fintech firms, Mr. Das said banks must prepare themselves for facing the dynamic environment while keeping their focus on appropriate business models, sustainability, stability, and consumer centrality.

Talking about the conference’s theme ‘Banking Beyond Tomorrow’, the RBI Governor said it would include adoption of emerging technologies, customization of products and services, and enhanced business and process automation. Mr. Das said UPI marked a watershed moment in the commencement of Open Banking in India. He said the country is witnessing an emergence of new business models because of the success of UPI, implementation of account aggregator framework, and the mass adoption of digital banking services.

Noting that an increasing number of customers are using social media, Mr. Das said banks can potentially use these tools to review their strategies in terms of customer segmentation, customer acquisition, and furthering financial inclusion plans besides using it for grievance redress management.

Mr. Das however advised banks to strike a fine balance between digital and paper-based forms of communication. He asked banks to deploy tools such as chatbots that will help customers navigate through the websites and mobile applications and thus greatly enhance the banking experience.

Leave A Reply

Your email address will not be published.

If you're looking for a fun and exciting new casino destination, look no further than Pin Up Casino India! Our online casino https://pinupcasino-india.in offers players a wide range of games to choose from, as well as some great bonus offers. We know that Indian players are looking for the best online gaming experience, and we are committed to providing just that! So come join us at Pin Up Casino India today and see what all the fuss is about!