Banking progress has boosted economy: NITI Aayog VC

New Delhi: The evolution in the banking sector in India in the last four years has laid a strong basis for expanding credit while accelerating the economy, NITI Aayog Vice Chairman Rajiv Kumar said. The government's think-tank organised a conference on Friday with an objective to increase and elevate the discourse on the banking sector. NITI Aayog VC during a conference on "The Future of Indian Banking," said that "there was still a lot of work to be done in improving the financial system and furthering reforms in the financial sector."

Technology vital in banking sector

Kumar also highlighted the importance of implementing technology for the future of the banking sector, saying it will serve customers even in rural areas.

"Technology has become critically important for banking already and will continue to become more important in future. This will serve to bring banking closer to the customer, including those in rural areas, and also bring tremendous efficiencies with greater speed of service at much lower cost," NITI Aayog VC said.

"The banking industry has to be continuously prepared for fraud and rising cyber security risks. The banking industry requires a suitable vigilance mechanism for trustworthy banking but with a clear mandate to distinguish between deliberate action, criminal negligence, error in judgment or unforeseeable business risk," Kumar added.

The attendees stressed the need to think in terms of "specialised and sector-based banking" and added that public sector banks have consistently supported social banking, unlike private and foreign banks. And that they should continue to do so.

The event hosted over 200 domestic and international participants, including policy makers, academicians, researchers, professionals, and students from various banks, universities and institutes. The eminent speakers included apart from the NITI Aayog vice-chairman, Rajiv Kumar, Secretary, Department of Financial Services, Ministry of Finance, Dr KV Subramanian, Chief Economic Advisor, Dr Andreas Bauer, Senior Resident Representative, IMF, Dr Marius Vismantas, Lead Financial Sector Specialist, World Bank, Sunil Mehta, MD, Punjab National Bank, Nandkumar Saravade, CEO, Reserve Bank Information Technology Pvt Ltd (ReBIT), and Dr Arvind Virmani, Chairman, EGROW Foundation.