After the collapse of banks in Europe and the US, the Indian central bank has become very cautious. It has already seen the havoc created by the PMC Bank fraud and the challenges while imposing a moratorium on Yes Bank. The RBI does not want any of the situations to repeat and is trying its best to be proactive and avoid any risk, whether it’s a systematic or any individual bank’s operational risk.
While looking at the recent diktat of the RBI, which stopped Kotak Mahindra Bank from onboarding new customers through its online channel… The question that comes to my mind is what is rotten in India's banking tech? The RBI has also pressed heavy charges on three other large banks. Here is my view.
In a report, foreign brokerage Barclays said opinion polls suggest a large victory for the Bharatiya Janata Party (BJP) in the Lok Sabha elections, despite opposition parties contesting as one alliance. “A BJP win would mean policy continuity with fiscal consolidation on track. A larger mandate may allow the party to bring its political and economic priorities on board,” it said.
From Dalal Street to Wall Street there is a positive sentiment due to the greater rally in the Indian stock market. Sensex crossed 75000 from 70000 in no time. The other benchmark index, Nifty 50 is also at an all-time high of 22750 and mutual fund portfolios have also broken new records.
For the common people, the RBI is an institution which prints money and manages policy rates but there is a lot more that the central bank does. The RBI also knows how much onion farmers are producing in India. From cracking down on the top bankers in the country to setting up new subsidiaries, RBI has done a lot more. but going ahead, it will have to do a lot more as the world of finance is evolving rapidly. Here is my view on RBI and its operations, RBI's work culture and challenges ahead in the future.
This week, The Hurun Global Rich List 2024 revealed that India has added 94 new billionaires this year surpassing 55 by China. At the same time, Mumbai’s wealth surged by 47% over the past year whereas Beijing has remained at 28%, making Mumbai the biggest city of billionaires in Asia.
CBDC represents the digital counterpart of physical cash offering a seamless transition into the digital economy while retaining the intrinsic properties of sovereign currency. Unlike existing digital payment systems where money flows out of bank accounts, CBDC resides within digital wallets, offering users a direct and familiar mode of transaction.
While FinTech is a combination of technology and innovation, it has also become a tightrope walk. On one side they have to find a solution to all the historical problems while on the other side, they are also expected to follow all the rules. In many ways, the regulations are also not very clear and not easy to decode either.
The biggest challenge that the BFSI companies are facing today is how to drive innovation. With growing technology prowess and digitalisation, BFSI companies have made a big difference and achieved mammoth scale.
Many central banks and financial institutions in the world have already have appointed dedicated resources like Chief Sustainability Officers. This week, Reserve Bank of India has released draft guidelines on financial risks related to climate but I think a lot needs to be done. Here is my view
Despite technology shrinking a bank branch into a smartphone, life has still not become easy for bankers. Their role has undergone a monumental shift, with business generation, bancassurance, margins and competition taking focus away from customer interface. So the recent Indian Banks Association (IBA) proposal to the Finance Ministry about the adoption of a five-day work-week and reports that it may soon become a reality has aptly met with cheer in the banking world.
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