Finance Minister Nirmala Sitharaman has urged the banking sector to plan for the next 25 years by embracing digital, modern technologies, and interconnected systems.
Addressing the 75th annual general meeting of the Indian Banks’ Association in Mumbai on Friday, FM Sitharaman, said: “Use of Web3, data analysis, artificial intelligence, deep dive into data – all of these should have some coordination by the IBA. Leveraging AI should be an immediate priority for banks, especially in generating early warning signs about something going wrong and fraud detection. Such technologies also bring in benefits such as tracking of wrong money, detecting unusual transactions, detecting fraud, alerting yourself and the government.”
The FM highlighted the importance of cyber protection for the banks: “Are you all geared to have adequate firewalls? Are you protected against hacking and Black Swan events which bring down your systems? The IBA should plan to make sure that all systems in all banks, whether private or public, should be talking to each other for the purpose of the customer. Account Aggregator Framework that the customer is benefitted when such systems are put in place with the consent of the customer. Are you communicating to the youth, to women, are you offering products to them? Are you digital savvy? Are your staff digital savvy?” she asked the banking community.
“It will be a big missed opportunity if these bridges between banks are not built. The banking sector has to play a lead role in realizing the dream of a developed India by 2047, as envisaged by the Prime Minister. Amrit Kaal has taken off very well, with the auspicious beginning of India becoming the fifth largest economy in the world. Banks are the biggest catalysts to growth. Professionalize your decision-making boards, with a purely banking perspective in mind, there is no way banks can any longer run with a crony background, our government has ensured that there are no instructions given or interference made in the functioning of the banks,” She added.
Sitharaman asked all banks to work on improving insurance coverage. The FM underlined the importance of having staff who can speak the local language, considering the diversity of the nation. “Please review the people getting posted at branches, people who cannot speak the local language should not be assigned to roles dealing with customers. If there is a way you can provide ATMs or business correspondents in such areas, I would welcome that. The more business correspondents are women, the better it would be for your business,” she said.
Union Minister of State for Finance Dr. Bhagwat Karad, Financial Services Secretary Sanjay Malhotra, and office bearers of IBA were present. The FM also felicitated PSB Reforms EASE 4.0 Winners.
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