India will see few more SBI-sized banks: FM

Digitised mapping of districts with no banking services, she said, could be planned by IBA. With the optical fibre technology, connectivity issues could be resolved with ease. Presently banks are working in digital silos. This needs to change. Systems of the banks should be inter-linked for seamless flow of banking activity, she said.

According to FM, "Formation of NARCL and IDRCL is expected to help banks immensely and congratulated IBA for taking a keen interest in its implementation."

Account aggregator framework, she said, could help in seamless credit outreach to the customers. This should be a focused area for banks.

The FM feels that the eastern States of the country are lagging behind other parts of the country in banking services. Hence, she emphasised that interface between banks and industry in the eastern region is essential for improved banking facilities in these regions. Banks should look into this aspect.

In the field of exports, since many businesses are relocating to India, banks should cease this opportunity to provide innovative banking services as per the requirements of the new businesses, she stressed. She gave a call to the banks to collaborate with fin-techs to gain further advancement in digitalisation. The government has initiated the formation of DFIs. We need DFIs (development finance institutions) in private sector also. The government expects good competition from public and private DFIs.

The FM wants corporate communications in banks have to improve. IBA can play a role in improving this aspect. The banks in the country have a major role to play in meeting the aspirations of the growing economy of India, she said. Speaking on the occasion, Union Minister of State for Finance, Dr Bhagwat Kishanrao Karad mentioned that Government has initiated several measures under the banner of "Atmanirbhar Bharat" to combat the challenges arising out of Covid pandemic. Banks have to play a key role in ensuring the benefits of the social schemes.

On the occasion, IBA chairman, Raj Kiran Rai, Chairman, IBA provided an overview of the activities of the association for the year 2020-21. Sunil Mehta, Chief Executive, IBA, made a presentation of illustrious journey of IBA over the last 75 years touching upon the major milestones achieved by IBA. Dinesh Kumar Khara, Deputy chairman, IBA proposed Vote of thanks on this occasion.