RBIs message of ZERO TOLERANCE on Banks'Regulatory and Compliance lapses.

                             RBIs message  of ZERO TOLERANCE on Banks' Regulatory and Compliance lapses.

Apropos to the  news item RBI to Hand -Deliver a message of Zero Tolerance on lapses (Et 9/7/2024), the need to boost the trust in banks and bring them back to be the powerful engine of growth to the economy though mobilisation of deposits and judicious deployment of credit is paramount in the background of depleting household savings in banks and the need for expansion of growth of credit to the essential sectors of the economy to meet the target of the Government to achieve the status of a developed economy by 1947. Having ensured better management of credit portfolio through reduction of non performing assets of banks by solid steps, now it is time for banks to take care of depositors who provide the bread and butter to banks, by enhancing their entitled real  interest rates on their savings devoid of taxes , improved customer service particularly the elder and super senior customers and rebuilding the trust in banks which is  seen to be eroding for  no valid reasons other than the tendency to ignore the customers and adopt technology without human intervention and need based Artificial intelligence. The fiscal policies of the Government need to be essentially people and growth oriented and the financial system particularly the banking system which holds the key to ensure fast and equitable growth needs to be sufficiently strengthened and secured from fraudsters, fraudulent borrowers, misuse and abuse of technology and laxity in Governance standards. The proposed address by the Dy Governors to the Chief Financial Officers and External Auditors are very timely and this needs to be supported by the fiscal incentives from the Government through the ensuing budget to be presented on the 23rd of this month.

T V G Krishnan

( Views are personal)