Why Are Banks Venturing Into New Areas?

For now, the concerns over bad loans have taken a back seat; a bigger challenge for the banking community is credit growth, explains Tamal Bandyopadhyay. The credit deposit ratio of the Indian banking industry in the fortnight ending August 13 was 69.92. This means for every Rs 100 worth of deposits, the banking system has […]

Explained: What tokenisation means and how it will affect card users

The Reserve Bank of India (RBI) recently said no entity in the card transaction or payment chain, apart from the card issuers and card networks, will be allowed to store sensitive user data from January 1, 2022. Instead, in transactions card data will be converted to tokens. What is tokenisation? In the case of digital […]

What Shah’s cooperation ministry will do

New ministry will bring much-needed transparency in the functioning of the cooperatives, which so far have been riddled with allegations of political interference and mismanagement. The Centre’s decision to carve out a separate ministry of cooperation from the agriculture ministry might not only boost creation of multi-state cooperatives in the country, but also bring much-needed […]

Even as old ones lie unsolved, new cases head to bankruptcy courts

The delay is mainly due to litigation and late clarifications by various government agencies including the Reserve Bank of India and litigation by the Enforcement Directorate. Even as lenders are getting ready to send more companies to bankruptcy courts from this week, several old cases are still awaiting resolution with no clarity on the completion […]

‘It would be a mistake to allow private sector corporate groups to own banks’

‘We still need a certain number of large public sector banks for financial inclusion and stability purposes.’ According to the latest Economic Survey, a V-shaped recovery is taking place in the Indian economy. The IMF’s projection for the next fiscal year starting April 2021 is a GDP growth of 11.5%. Finance Minister Nirmala Sitharaman’s Budget […]

For banks, the option is to go digital or die

Bankers need to take a call on whether they will allow technology firms to run banks or banks themselves will turn into tech firms, says Tamal Bandyopadhyay. As we move ahead in 2021, let’s look back at how banking evolved in India in the first two decades of this century. And what to expect next. […]

Retail inflation likely to stay elevated in short term

After unseasonal rains, supply disruptions and pandemic-induced woes pushed retail inflation well over the Reserve Bank’s comfort zone in 2020, the scenario is likely to stay that way at least in the short term as economic recovery slowly gains foothold. For most part of this year, pricier food items pushed the retail inflation, based on […]

Corporate-run banks: Will depositors benefit?

The most common complaint of financial consumers is cumbersome processes, complicated products, usurious charges, and mis-selling of products, which finally don’t deliver what is promised or as expect, notes Debashis Basu. The Reserve Bank of India (RBI) recently released a report of its internal working group on ownership guidelines and corporate structure of Indian private-sector […]

Cash-to-GDP ratio could hit 14-15%, the highest since independence

It is a classic case of extremes: The worst contraction in GDP along with the highest-ever levels of cash in the economy; and a severe dent in consumption together with strong growth in bank deposits and digital payments. Four years ago, on November 8, when high-value currency notes (Rs 500 and Rs 1,000), which accounted […]