RBI official for increasing use of technology in banking sector

Mumbai, Jan 16 (UNI) Dr R B Barman, Executive Director, Reserve Bank of India, has emphasised on the increased use of technology in the Indian banking sector.

Inaugurating the second international CII Banking Tech Summit here today, he said technology allows lot of innovative services to be provided to customers. Still, he rued over the fact that electronic banking accounted for merely 25 per cent of total number of banking transactions today when measured in volume terms.

''The effort should be to reduce dependence on cheques,'' he said. Basel II should not be taken as a regulatory need, but as a means for banks to do business in a more efficient manner as it would help banks better manage risk, he added.

Listing some of the changes that confronted the banking sector, Dr Barman pointed out that the profit making model was shifting from corporate to retail. He also mentioned the challenge of serving rural areas. While information technology was a solution, ultimately people using it would determine its success or otherwise. ''IT can help, but it is people who drive the initiative,'' he pointed out.

On the occasion, Barman also released CII - PwC Study on ''Expanding Horizons Through Technology''.

Shrinivas V Dempo, Deputy Chairman, CII Western Region and Chairman&Managing Director V S Dempo&Co Pvt Ltd pointed out that in recent years, technology has acted as the driver for managing and processing customer and operational data effectively and efficiently, to fuel top line growth&facilitate marketing activity.

Deepak Ghaisas, Chairman of the summit and CEO - India Operations&Chief Financial Officer I-Flex solutions, said the Indian banking system was seeing how technology is aiding the increasingly stringent and complex governance, regulatory compliance and risk management areas through latest technology solutions which help - from monitoring Clause-49 compliance to managing data in line with Basel II recommendations.

UNI