Banking News

India to have a competitive, viable banking sector by 2047, says DFS Secretary


India should have a highly competitive, viable banking sector by 2047 with substantial Indian ownership, universal access to banking and other financial services for all our citizens at the lowest intermediation costs, financial services secretary Vivek Joshi said.

Speaking on the NextGen Reforms at the CII Global Economic Policy Forum 2023, Joshi said cybersecurity and digital data protections will be an area of concern and emphasised on a need for continuous review of financial reforms to identify regulatory gaps and overlaps and benchmark them with the best global practices.

“The expenditure on cyber security arrangements needs to be enhanced by all stakeholders. Further, all the relevant entities need to be prepared to protect and secure digital personal data of their clients as part of the stipulated regulatory norms laid down under the digital Personal Data Protection Act 2023,” he said.

According to Joshi, India’s financial sector needs to support capital formation, promotion of trade and business investment in MSMEs, enabling them to scale up.

“There is a need for us to further deepen our capital markets with active participation from diversified investors,” he said, adding that India’s financial system needs to provide much needed insurance protection and retirement security for all the Indians.

Sharing the government’s vision for 2047, Joshi said, the real GDP growth rate will have to be on an average around 7%-7.5% per annum over a quarter of century starting at 8%. “For the first decade, the other growth must be equitable employment generating growth when requirements have adequate level of resources and efficient utilization of those resources are imperative,” he said. Joshi further suggested that India must move towards database lending instead of judgment based lending, especially for the small businesses in the medium term. “Unification of credit guarantee schemes of different ministries should be focused with facilitation for digital banking, and fintech from regulators in this direction,” he said.

Talking about the labour sector reforms, labour and employment secretary Arti Ahuja said the government aims to formalize its workforce, provide social security to its workers and has been instrumental in leading the demand for global skills mapping and taxonomy at the recently concluded G20 meet in India.

“At the G20 working group meeting, we resolved to have a global skill gap mapping and develop a common taxonomy of jobs and skills to help in movement of people between nations. “However, we weren’t able to achieve uniformity on that. ILO is going to do this going ahead. This will be India’s contribution to a systemic reform,” she added.

Laying out the multiple infrastructure sector related reforms including the GatiShakti National Master Plan, Sumita Dawra, special secretary (logistics), DPIIT said it will have a positive impact on planning infrastructure while the logistics policy in the country is helping us go in the direction of a more efficient logistics system in the country.


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