Indian Banking Needs Reforms

Indian Banking Needs Reforms

Urging on the need to conceive multi level reforms in the banking sector, Finance Minister Arun Jaitley emphasized that Indian banking sector need to reform it’s approach and policies.

“There are unacceptable levels of NPAs (non-performing assets) in some cases and the banks have to be given a sufficient amount of leeway to deal with commercial issues with a commercial mindset,” he said.

“There is a need to get the best talent into the system. There is a need for far greater autonomy being given to them (public sector banks),” Jaitley told reporters on the sidelines of the two-day banking retreat.

Top bankers of India have gathered here to discuss long-pending reforms in the banking sector, which will help improve the health of public sector banks.

Jaitley also termed “unacceptable” the level of bad assets in the banking system and promised more autonomy for public sector banks to run business with a “commercial mindset”.

In another news development, Reserve Bank of India has directed all authorised entities such as payment firms to display company name prominently in their promotional products to ensure transparency and to build lasting relationships.

“It has come to our notice that many authorised entities, which use specific brand names for their products like e-wallets, smart cards, White Label ATMs (WLAs), etc., do not disclose/disseminate their own company name in the information made available to the users of their products. The public may thus not be able to correlate a product brand name to the name of the entity/company authorised under the PSS Act,” the apex bank said in a notification yesterday.

To ensure transparency in the promotional material and to build an enduring relationship with the customers, all authorised entities are advised to comply with certain procedures it said.