The Reserve Bank of India Governor has discussed the issues of banking sector with the officials of Public sector banks(PSBs) and Indian Banks Association(IBA).
During the meeting,the issue of less than desired level of transmission of monetary policy rates was discussed with the banks.Even though the RBI has cut the Repo rate by 75 basis points in 2019,banks have not fully passed on the benefits to their customers.
The meeting also discussed about giving impetus to resolution of stressed assets facilitated by revised framework for resolution announced by the RBI and strengthening internal control mechanism for improved fraud risk management.
The recent initiatives to address issues relating to non-banking financial companies(NBFCs) and the role banks can play in mitigating lingering concerns also came up for discussion.
RBI Governor has also underlined the importance of expanding and deepening the digital payments ecosystem in line with the recommendations of the Report on Deepening of Digital Payments and the Reserve Bank’s Payment System Vision Document 2021.
The Banks has said that it will identify one district in each state to make it 100% digitally enabled within a time frame of one year in close coordination and collaboration with all stakeholders including state level bankers’ committees(SLBCs),state governments among others.