The report prepared by CII and Deloitte points out the changes in the Banking and Financial sector, in light of the various legislations, digitization and the Banking Regulation Act. It aims to understand the various issues of national impact within Financial Services and the outlook for the coming year.
The report covers the following aspects:
Insolvency and Bankruptcy code 2016 is applicable from May 2016 and extends to all of India except Jammu and Kashmir. It provides for resolution of insolvency in a speedier and homebound manner and also specifies prioritization of settlement of debts owed by a corporate debtor. The code will curb the number of long pending cases substantially. It should encourage foreign investment as well as promote entrepreneurship as businesses can exit faster and with few legal hassles. This should result in improving India' s international ranking due to ease of doing business.
Digital Banking- Using robotic process automation processes that are rule based and repeatable can be automated within the digital bank. The challenge however will be to change the mind set and misunderstanding that automation will lead to job losses. Banks can make better and quicker decisions using artificial intelligence tools such as chat bots, machine learning and even robot advisors.
The biggest impact of GST on the Banking sector is the shift to decentralised registration. This has resulted in increase in compliance and administration activities for the banks.
It was released at the Banking Colloquium 2017 held on 16 September 2017 at Kolkata.