Friday, November 19, 2021

Day 207

 Time for Leap Frogging

I listened  online to our Hon. PM’s address to senior bankers during the conference on” Creating Synergies for Seamless Credit Flow and Economic growth” yesterday… https://youtu.be/hhT9BmNwZSQ  

Many issues the Hon. PM covered for the active consideration of  bankers…..

  •   he also exhorted them, among others, to play a much more pro-active role in identifying the emerging financial needs of borrowers at the grass root level and devise schemes to address them.
  • in this connection he added that the nation has great expectations from bankers in fulfilling the goals set by the government especially in the 75th year of Independence

Being an ex-banker and also a faculty for long, many interesting action points for bankers could be identified…. I wish to cite just one area that he repeatedly emphasized…

·       Hon. PM asked each of the bank branches to identify at least 100 clients- of medium size- which undertake all their transactions (100%) on the digital mode…

·       this is a wonderful suggestion and goal for the bankers  to achieve before the next Independence Day

A related point comes to the mind- as to why our country is not having such units currently and even if they are present, their number is  miniscule

In foreign countries… say USA… almost all transactions are on the Digital mode…. this is my observation during a brief trip - couple of years back… starting from petrol pumps... in fact, in such pumps the customer himself puts the petrol in the vehicle and pay digitally and rides away.

·       Why we did not go in that direction especially after demonetization?

·         Banker is going to face hurdles in reaching this small target… because the clients/vendors/customers still do not want to shed the cash transactions… as that is the prevailing mode/ custom in the country….

·       Cash is preferred….at many places... how to change this outlook?….

  One method could be to provide incentives for adopting and disincentives/deterrents for avoiding full digital payments by vendors/ organisations....

·       Much thinking and actions will be needed and called for…

·      All bankers in general and bank executives in particular should listen to this address, post -haste ( see link given earlier).

वन्दे मातरम्

शान्ति

8 AM

1 comment:

  1. Providing incentives for usage of digital mode.. is a good suggestion and apt.. disincentives for usage of cash will pave way for using digital methods.. txs ..vasudevan, Bengaluru

    ReplyDelete

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