Digital Banking Needs A Regulatory Framework | SupportBiz

News

Digital Banking Needs A Regulatory Framework

 
Tags: banks, E-commerce
Understanding the advantage of digital disruption, which has made its way into the banking sector, it’s necessary to formulate a conducive regulatory framework, create awareness programmes for customers to familiarize them with new banking technologies, digitize records for banks to reach out to potential customers and make digital banking convenient and simpler. 
 
Earlier during the launch of DBT  in 2013 it was understood that the purpose of Direct Benefits Transfer (DBT) is to ensure that benefits go to individuals' bank accounts electronically, minimising tiers involved in fund flow thereby reducing delay in payment, ensuring accurate targeting of the beneficiary and curbing pilferage and duplication. 28 schemes were identified for DBT rollout in 43 identified districts.
 
Speaking on DBT, Arundhati Bhattacharya, Chairperson, FICCI’s Banking and FI’s Committee and SBI chairperson, said that “financial inclusion schemes of the Government can become sustainable and profitable with DBT becoming a reality, enhanced financial literacy and access to digital banking by way of broadband and data connectivity". She added that "digital banking also has challenges when it comes to regulations and KYC norms while e-commerce industry does not face any such restrictions.”
 
Sikha Sharma MD and CEO, Axis Bank. said that digital disruption can have a “dramatic impact on country’s economic activity and it would lead to entrepreneurship which is much-needed at the grass root level to leverage the demographic dividend of India.” She concluded that that there is a need to build trust among the customers for digital banking.