NEW DELHI, FEBRUARY 25
A twin strategy of better monitoring and supervision of banks and
spreading the best corporate governance standards could help tackle
financial frauds such as the one uncovered recently in Punjab National
Bank, the Confederation of Indian Industry (CII) said on Sunday.
“Government, regulators and industry must act fast to address systemic
risks in the financial sector. The three key solutions for the banking
sector are better management and operational efficiencies, use of
technology such as blockchain and big data analytics, and lowering
Government shareholding in public sector banks,” said CII President
Shobana Kamineni in a release here. “Such financial malfeasance
perpetrated by a collusion of unethical business entities and corrupt
officials should not lead to a situation where funds to industry get
choked,” she said.
Technological advances can be a major enabler for ensuring monitoring of
transactions that are subject to financial fraud and risks. Some banks
are already deploying artificial intelligence, big data and blockchain
technologies to better regulate their operations. It is important to
minimise human interface in such transactions to lower the risk of
misdemeanours, the release said.
Stressing the need for consolidating public sector banks into a few
strong banks, she said the government could consider bringing down its
stakes so that expert management practices and greater accountability
can be brought in
Source:Business line.
