17 Jun , 2022 By : monika singh
The impact of covid-19 pandemic, ongoing geopolitical crisis, and all pervasive technological innovations sweeping across economies are challenging the traditional financial intermediation processes like banks, NBFCs and housing finance companies, said Reserve Bank of India Governor Shaktikanta Das is his inaugural address at the FE Modern BFSI Summit today (17 June). The banking paradigm is undergoing major change as the core functions of a financial sector namely intermediation, asset price discovery, risk transfer and payments are globally undergoing a process of transformation, driven by technological advancement, he added. Business of banking has witnessed a shift from traditional branch banking to digital banking due to innovations in Information Technology, growth in mobile and internet connectively, market-based financial intermediation and advent of fintech.
‘Digital mobile anytime, anywhere’ banking is becoming the order of the day. Indigenously developed UPI and Aadhaar enabled payment services have become the backbone of retail payment system. Along these developments, the Reserve Bank’s regulatory approach has been aligned to support and foster such development, Das added.
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