look news india
Mumbai: Keeping in mind that the Reserve Bank of India is keeping a close eye on the frequent errors in technology and the difficulties it causes to depositors, banks in the country have started a movement to increase spending on technology. Banking sector circles said.
The Reserve Bank recently took action against Kotak Mahindra Bank due to a technical glitch that affected the bank's operations.
Banks have started taking steps towards increasing the total operating cost of banks from 5 to 6 percent to 10 percent. A banker said, do not want any kind of flaw or negligence in technology.
Globally, 10 to 12 percent of the total operating costs of banks are spent on technology.
The Reserve Bank is constantly monitoring the information technology (IT) systems of banks. The Reserve Bank is continuously advising banks to remove technology related shortcomings.
A recent report said that the country's banking and investment services companies have planned to spend $11 billion on technology in 2023.
Banking sector circles say that in view of the increasing digital activity in the country's banking sector, there is constant pressure on the IT systems of banks.
More than 45 percent of payments are being made digitally and the incidence of errors has increased.
The circles said that the existing IT system of the banks is very old which needs to be upgraded.