As per Shaktikanta Das, Governor of the Reserve Bank of India, India may witness a diversification in its banking sector in the coming years as the moneylenders embrace innovation. The nation will see a different distinctive segment which can be part of four levels, the Reserve Bank of India Governor said at the Annual Banking Conclave organised recently. The sections will include:
- As declared by the Government last year, it’ll include large traditional banks with domestic as well as international presence. This would be empowered after the merger of 10 public sector banks, as declared by the Government last year.
- to include a few mid-sized banks and a few niche banks spread over the nation.
- to incorporate small private banks, small fund banks, territorial rural banks and cooperative banks that cater to small borrowers.
- to comprise digital entities as well as financial innovation companies that serve as specialists or partners of bigger banks to spread services.
At the same time, speculations in innovation and ability building ought to be ventured up. Bigger and spry banks may be able to reposition themselves with way better branding, backed by innovation, abilities and business models. Das said that the RBI is engaging with different partners, counting statutory evaluators, credit rating offices, credit data companies, mutual funds and banks having large exposures to non-bank money related companies.
According to the RBI Governor, well-planned consolidation of public sector banks can create synergies in allotment of workforce and branches as well as streamline operations to meet future challenges. The center, Das said, has to be on ushering on advancements in proficiency and legitimization of scarce capital to meet the capital adequacy necessities.
Commenting on concerns over supervision and control of expansive and complex financial services, Das proposed the supervisory administration will be fixed. He added that the changing scene of the keeping money industry will unfurl against the background of a solid regulatory and supervisory regime with increased intensity and tech-enabled supervision of banks.