Page 8 - Banking Finance May 2024

BANK UPDATE

Velonie said. Of the overall co-lending SBI also plans to build KaaS (KYC as a
book, personal loans alone account for Service) for better management of KYC Attention Subscribers
about a third of the AUM, followed by (know your customer) profiling of the Please renew your Subscription of The
housing loans at 20 percent and unse- customers. Insurance Times Journal to receive
cured MSME loans and gold loans each The RBI has directed Regulated Enti- copy of the journal uninterruptedly.
making up 13% of the pie. ties to follow 'KYC Guidelines', in terms You can now pay by GPAY, Phonepe,
Secured MSME (including loan against of the Prevention of Money Launder- Paytm, Amazon, ICICI Pay, BHIM UPI
property) and vehicle loans comprise ing Act 2002, whereby certain per-
the rest 20 per cent. While co-lending sonal information of the customer is
books for all asset classes will grow, the obtained. The KYC policy of a bank usu-
pace of growth for personal loans is ally has four components - customer
expected to be slower than that seen acceptance policy, risk management,
in the recent past, it said. This is be- customer identification procedures
cause of the revision in the risk weight and monitoring of transactions.
of unsecured consumer credit to 125
per cent now from 100 per cent ear- Small finance banks want
lier, which would lead to some modera-
tion in growth for unsecured loans. to peel off the 'small' label
Executives of SFBs requested Reserve
State Bank's agents to Bank of India (RBI) officials to let them
drop the 'small finance' tag at a recent
soon visit branches incog- meeting, two people aware of the
nito to monitor customer matter said. Dropping the tag will im-
prove branding and customer connect,
services and attract more current and savings
State Bank of India plans to take a leaf accounts (CASA), the people said on
out of this history and engage the ser- condition of anonymity.
vices of an external agency to visit in- Created in 2016 to direct loans to
cognito its branches to monitor cus-
tomer services. smaller enterprises, farmers and un-
der-served segments, SFBs are re-
India's largest lender plans to conduct quired to mention 'small finance' in Sashi Publications Easy Payment
this exercise on an annual basis. The their names, and keep at least 75% of Modes :-
bank had 22,405 domestic branches as their loans below Rs. 25 lakhs. Cur- i) UPI ID: SASHIBOOKS@KOTAK
of March end 2023. rently, India has a total of 10 SFBs, ii) GPAY: 9830171022@okbizaxis
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8 | 2024 | MAY | BANKING FINANCE