Page 40 - Banking Finance September 2018

ARTICLE

bad loans pertain to small borrowers which constitute a use the social media platform to track the activities of the
significant chunk. Accordingly it is crucial to realise the borrower so as to constant check in further slippage.
importance of recovery in these small hardcore NPA accounts
which under the ambit of big accounts are ensconced in Why Social Media?
some corner not getting desired attention relentlessly.
Technological advances have changed the world thoroughly.
Hardly there is anything which has not been touched and
The above mentioned state of affairs draw the attention of
changed by technology. More than anything else it is the
everybody, right from the policy makers to the executors
technological advancements in communication which
and the course of action required is to enforce recovery
affected everyone's life. The internet and social media have
measures. The worrisome aspect is the growth in the small
opened the door to connecting people in ways never
NPA accounts. Every account which turns NPA and not
imagined possible before. Now a days people prefer their
getting enough attention by way of recovery efforts is infact
introduction and interaction to be conducted and
instrumental in creating a few more accounts turning NPA represented more and more on social media. Social media
by way of showing rewards of not paying while no immediate
has made it possible for the people to connect any number
gratification of making prompt repayment in credit facilities.
of people out there at the flash of light.
Thus it kick start a chain reaction of NPA accounts resulting
Having said that, there are various instances when bankers
in dilution in the culture of maintaining financial discipline
requires to find out unknown facts about borrower and
and timely repayment., which is a dangerous situation for
sometimes the borrowers themselves-
the banks as well for financial stability of the country. This
1. Owing to various compulsions of employment,
calls for innovative solutions to resolve the issue and social
constantly searching and taking up better employment
media tools should be envisaged as essential part of NPA
opportunities, short duration job assignments- people
resolution mechanism.
migrate swiftly from one place to another without
bothering to intimate the bank about their new
In changing times, majority of banks workforce now belongs
whereabouts resultantly making it difficult for the
to Gen X and Y employees; likewise, the borrower has also bankers to contact them for repayment in their loan
transformed from a ordinary citizen into a digitally
accounts.
automated one where the transactional behaviour is also
not confine within the walls of a brick and mortar branch 2. The responsiveness and co-operation of borrower
while acquired the shape of personal computer and before the sanction of loan just transformed into
smartphones enabling him to carry out the most of the nonchalance and stubbornness after the disbursement
banking transactions without the intervention of the
manpower of branches.

This emerging non intrusive digital banking has granted
specific privacy which has a flip side of doing cyber frauds
and to dodge away from responsibilities of payment of loan
overdue. It would be pertinent to excerpt here former RBI
governor's famous quote-

"In future, banking will be there but banks will
not be "

The technology is proving to be the essential and defining
feature of banking which warrants the skill set of the bank
must be honed to leverage the technology and effectively

40 | 2018 | SEPTEMBER | BANKING FINANCE