home page 


 home | free registration
  | features on banking | features on IT | policies
                                            

banking finance jobs forex stocks NRIs what's new



issues today


issues today > views from the top                                                                           
For special VRS helpline click here


Views from the Top



The Bank Economists Conference 2000 (BECON 2000) is a very important event and forum in the Indian banking industry to discuss and deliberate extensively on a host of issues that are relevant in the new millennium for the banking sector. It gives one the insight what is being thought and planned by the top policy makers in the country.

We have covered the keynote address at the BECON 2000,of Dr Bimal Jalan, Governor, Reserve Bank of India in detail as it covers thinking of RBI on major issues related to banking sector.

Click here to also read in brief, views of:

1. Mr Montek Singh Ahluwalia, Member, Planning Commission

2. Mr N. Vittal, Central Vigilance Commissioner

3. Mr M.S. Verma, Chairman of the Telecom Regulatory Authority of India (TRAI)


Dr Bimal Jalan, Governor, Reserve Bank of India

Dr Bimal Jalan, has emhasised that there is need to follow best international practices in accounting norms, disclosure and transparency standards to give confidence to the international community about the Indian banking system. He indicated that RBI would come out with more stringent norms for disclosure. The norms would also call for greater disclosure and better asset-liability and risk management by banks. Mr Jalan added that (zero net NPA level, as suggested by the Narasimham Committee) must be our priority target in the next two to three years.

Mr Jalan felt that the most neglected area in banking was training of personnel in the industry. He wondered whether it would be possible to make some amount of training compulsory and suggested that it could be on the lines of revalidation of licence in certain professions through exams.

To get over the seniority versus performance debate in appointment to higher cadres, the appraisal and assessment mechanism needed to be beefed up. He pointed out that retaining the brightest talent and keeping them motivated would be the biggest challenge for banks in the new millennium. Neither capital, land nor labour costs would confer significant advantage any longer. The primary source today was skills and ability to adapt and change.

According to him the rate scenario is looking positive and it would be left to the discretion of individual banks to decide on their rates. There would be no changes in the lending rate in the current financial year. As competition brought the margins of nationalised banks under pressure, he advised them to look non-fund based activities as an alternative source of revenue generation.

In addition to economic reforms, it is also important to embark on an urgent programme to 'revitalise' governance and public delivery systems at all levels of government - the state, the Centre and the district, he said. On the other issues that needed immediate attention, he said that there should be initiatives for the full disclosure of all financial decisions made by the government and its multifarious agencies.







about us | contact us | advertise/associate | terms of use | disclaimer

©copyright banknetindia.com. All rights reserved worldwide.