Page 10 - BANKING FINANCE APRIL 2017
P. 10
RBI CORNER
RESERVE BANK
Banks should revamp themselves to meet customer
RBI to issue new Rs 10
needs: RBI ED
notes with enhanced se-
Reserve Bank of India Executive Director Sudarshan Sen has recently called on
curity features banks to revamp themselves using financial tech-
The Reserve Bank of India (RBI) will nology, to meet changing customer needs and also
soon issue stressed on more vigilance on data protection and
Rs 10 de- cyber security.
no mi na -
He added banks need to work with financial tech-
tion notes
nology companies, and also keep regulators in the
with en-
loop to ensure the legal and regulatory framework adapts to ensure customers
hanced security features for circula- are protected, while innovations happen. With robotics and artificial intelligence
tion. RBI said the banknotes in the coming into vogue, banks will be able to serve customers better, and cut the
Mahatma Gandhi series-2005 are to cost of providing services, he emphasised.
carry inset letter 'L' on both number
panels, bearing the signature of RBI Key interest rates to be untouched, says RBI report
governor Urjit Patel. The year of The Reserve Bank of India (RBI) is likely to keep key interest rates unaffected on
printing, 2017, will be on the reverse 6 April, while there is scope for a rate cut in the
of the note. Among other features, August meet on slow growth and gentle infla-
numerals on both the panels will be tion, says a report.
in ascending size from left to right.
"Still, it will likely keep the door open for further
The first three alpha-numeric char- easing with growth slowing, benign inflation and
acters (prefix) will remain constant
the need to attract FPI inflows by supporting
in size.
growth," Bank of America Merrill Lynch
(BofAML) said in a research note adding "we continue to expect a 25 bps RBI
RBI to launch standard cut on 2 August".
procedure for FDIs At the 8 February policy review meet, the RBI kept key interest rates unchanged
The RBI is expected to formulate a at 6.25% and said it is awaiting more clarity on inflation trend and the impact of
standard operating procedure for the demonetisation on growth.
approval of FDI proposals by minis- The report further noted that high lending rates and demonetisation will likely
tries following the government's de- push recovery to the second half of this year and inflation is also likely to remain
cision to phase out the Foreign In- well within the RBI's 2-6% target range. Moreover, RBI rate cuts should support
vestment Promotion Board. the Indian rupee by attracting FPI equity inflows at a time of global uncertainty.
10 | 2017 | APRIL | BANKING FINANCE
Insurance Training Centre © Call 09883398055 / 09883380339
