Banking begs new direction

Monetary Policy breathed fresh air and for once customers felt some comfort existed for them too. Post-liberalisation banks went on investing in technology and realising the costs of such investments through various types of charges. Now after realising the cost of investment in technologies over the last two decades, it is time to pass on the benefits to the customers in whose name they infused technologies. Waiver of electronic transaction charges for a year at least to start with has been viewed as a big relief. ‘No Frills’ accounts norms also changed. Though interest rate changes disappointed the depositors, borrowers expect some rate reduction transmission soon.

Prudential norms underwent a change giving comfort to the banks and borrowers alike. Resolution process provided leeway for the corporates running after bankruptcy courts to resolve their debt and start production/services to their full capacities sooner than later. The present environment of banking is transiting from dissatisfaction to hope for the better.