Page 32 - Banking Finance July 2025

ARTICLE

From the above table it is seen that out of 43 RRBs, 37
Internet Banking with view facility 25
RRBs earned profit of Rs. 6,178 crore but 6 RRBs in-
Internet banking with transaction facility 17
curred a loss of Rs. 1,205 crore as on March 31, 2023.
(license acquired)
Total accumulated loss of RRBs was Rs. 9,841 crore on
that date. This is not a favorable position of RRBs in the Source: Department of Financial Services, Govt. of India
country. The fact that the amount of accumulated losses
are gradually increasing and 15 RRBs have accumulated Internet banking facility is needed by customers. Adopt-
ing new technologies including cyber security also de-
losses. After amalgamation proper attention should be
mands significant investment.
given to reduce accumulated losses for the improve-
ment of financial health of RRBs.
Conclusion:
(v) Status of technology: Technology plays a pivotal role The 'One State-One RRB' policy is expected to further sup-
for banking operation. Customer satisfaction depends port inclusive rural development and boost the rural
on technological availability.
economy. However, successful implementation of amalgam-
Table: 3 Status of Technology in RRBs as ation will depend on proper strategic planning, engagement
on 31st March 2023 of different stakeholders, technological availability and
proper utilization of human resources.
No. of RRBs 43
Banks on CBS 43 It is expected that the policy will improve the financial health
No. of Banks having RTGS/NEFT 43 and administrative effectiveness of Regional Rural Banks re-
sulting the benefit of people belong to rural community and
Mobile banking license obtained 31
overall economic development of the country.

Sebi Proposes AI-ML Guidelines to Regulate Tech Use in Securities Market
The Securities and Exchange Board of India (Sebi) is preparing to integrate artificial intelligence and machine learn-
ing (AI/ML) into market operations with a structured regulatory approach. In a newly released consultation paper
titled 'Guidelines for Responsible Usage of AI/ML in the Indian Securities Market', Sebi has outlined a five-point frame-
work to ensure safe and ethical deployment of these technologies.
The proposed framework covers: model governance, investor protection and disclosures, testing mechanisms, fair-
ness and bias mitigation, and data privacy along with cybersecurity safeguards. These measures aim to address the
potential risks of algorithmic bias, data misuse, and operational opacity.
The consultation follows inputs from a dedicated working group of AI/ML experts, who stressed the need for ethical
innovation in financial markets. The move reflects Sebi's proactive stance in balancing technological advancement
with investor interests and market stability.

Indian Equities Lead Global Charts with 16% Return in 3 Months: Bandhan MF

India outpaced global equity markets in the three months ending May 2025, delivering an impressive 16% return,
making it the best-performing market worldwide, according to Bandhan Mutual Fund's Monthly Market Outlook.
This performance sharply contrasted with emerging markets, which posted 5% gains, while world and developed
market indices rose just 2%.
Over a five-year horizon, Indian equities continued their dominance with an 18% annualised US dollar return, out-
performing global and developed markets (12%) and delivering over four times the return of emerging markets.
Since the market low of March 2020, India's outperformance remains consistent.
Among global markets, China was the laggard in May, falling 2%. Within Indian equities, small-cap stocks led across
all timeframes-3 months, 5 years, and since March 2020-followed by mid-caps and then large-caps.

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