RBI for improving reporting standards of foreign banks
29 Jun 2011
The Reserve Bank of India wants an improvement in the reporting standards of foreign banks operating in the country.
According to RBI deputy governor K C Chakrabarty "You need technology if you have a large branch network. Foreign banks don't have very large networks. So we are okay with whatever technology they have if they are not having any problem, but yes, we are not that happy with their reporting. They need to improve their reporting and that is what as a part of requirement for automated data flow is applicable to all banks and not just foreign banks."
Chakrabarty was speaking at a seminar in Mumbai on banking technology and its role in driving growth.
He said, though mobile banking for the masses was not an unviable option for banks, it was important for banks to develop a suitable ecosystem for mobile banking to pick up in India. He added that maintaining the maximum limit of Rs50,000 for each mobile transaction would not pose a deterrent.
"It's not scaling up because we don't have the ecosystem in place. Mobile banking is for financial inclusion. How many people would want to do a transaction for more than Rs 50,000? Banks are preparing themselves for an ecosystem, which takes time," he said.
"So you can't say it is not happening. Mobile banking is not for ultra rich people, they have many other resources for fund transactions. It has to serve the purpose of reaching out to areas and people where there are no branches," he said.
