CHALLENGES TO THE INDIAN BANKING SECTOR
➢ Piling up of bad loans in India is to the tune of Rs10 lakh crores, is bigger than the gross
domestic products of at least 137 countries.
➢ Asset quality pressures have remained elevated during the last few years due to moderate
growth in the economy and low capex demand.
➢ It is crucial for the banks to meet the Basel-III regulatory norms by March 2019. The
Government of India has been infusing capital on a regular basis into the public sector banks,
to enable them to meet regulatory capital requirements and maintain the government stake in
the PSBs at a benchmark level.
➢ The increasing popularity of FinTech companies is disrupting the way of traditional
banking and creates a big challenge for traditional banks to adjust themselves quickly
to the changes not just in technology, but also in operations, culture, and other facets
of the industry.
➢ With increasing access to the internet, Indians are taking to digital channels for their
banking needs which leads to Cybercrimes like phishing, vishing and social
engineering and attacks by organized gangs.
➢ The biggest challenge is to build capacity at a rate which matches the loss of existing
talent and skills due to retirement.
➢ Technological innovation is considered to be one of the most influential developments
affecting the financial sector in the near future.
The objective of KYC/AML/CFT guidelines is to prevent banks/FIs from being used,
intentionally or unintentionally, by criminal elements for money laundering or terrorist
financing activities.
➢ Piling up of bad loans in India is to the tune of Rs10 lakh crores, is bigger than the gross
domestic products of at least 137 countries.
➢ Asset quality pressures have remained elevated during the last few years due to moderate
growth in the economy and low capex demand.
➢ It is crucial for the banks to meet the Basel-III regulatory norms by March 2019. The
Government of India has been infusing capital on a regular basis into the public sector banks,
to enable them to meet regulatory capital requirements and maintain the government stake in
the PSBs at a benchmark level.
➢ The increasing popularity of FinTech companies is disrupting the way of traditional
banking and creates a big challenge for traditional banks to adjust themselves quickly
to the changes not just in technology, but also in operations, culture, and other facets
of the industry.
➢ With increasing access to the internet, Indians are taking to digital channels for their
banking needs which leads to Cybercrimes like phishing, vishing and social
engineering and attacks by organized gangs.
➢ The biggest challenge is to build capacity at a rate which matches the loss of existing
talent and skills due to retirement.
➢ Technological innovation is considered to be one of the most influential developments
affecting the financial sector in the near future.
The objective of KYC/AML/CFT guidelines is to prevent banks/FIs from being used,
intentionally or unintentionally, by criminal elements for money laundering or terrorist
financing activities.
No comments:
Post a Comment