Banks are special and unlike any other business entity, and have played a special role in the current macroeconomic situation, RBI Governor Shaktikanta Das said at the Bank of Baroda banking conference on Friday.
Das said the banks should be permanent institutions after obtaining the regulatory license. The greatest responsibility rests with the banks themselves to ensure sound governance and risk management which is an integral part of the operation of a bank. Going beyond regulatory requirements in terms of capital, liquidity and provisioning standards, or even exceeding them, would be a sign of good governance and risk management, he added.
Emphasizing on preparing banks for tomorrow, the RBI Governor said, “The Indian banking system has undergone significant changes in terms of market structure and competition. the idea of a new banking era, leading to innovative products and services and new business models.
Social media is an alternative platform to reach millions of customers. While with advances in digital banking, cybersecurity will remain a significant challenge for all stakeholders, Das said in his remarks.
He added, “Given the wave of digitalization in the banking world and with new tech-savvy customers, banks also need to strike the right balance between digital and paper-based forms of communication.”
He added that the ssimplify disclosures and access to information and the innovative deployment of tools such as chatbots to help customers navigate websites and mobile apps will dramatically improve the banking experience.