Banks are special and not like any other commercial entity, and played a special role in the current macroeconomic situation, said RBI governor Shaktikanta Das on Friday at the Bank of Baroda Banking Conference.

Das said that banks are expected to be permanent institutions after they obtain the regulatory licence. The bigger responsibility lies with the banks themselves to ensure robust governance and risk management which are integral to the functioning of a bank. Going beyond regulatory prescriptions in terms of capital, liquidity and provisioning norms, and even exceeding them, would be a sign of good governance and robust risk management, he added.

Emphasising on preparing the banks for tomorrow, the RBI governor said, "The Indian banking system has undergone significant changes in terms of market structure and competition. The increased adoption of technology by traditional banks through self-upgradation or collaboration with fintechs is resonating with the idea of new-age banking. This is leading to innovative products and services and newer business models.

Social media is an alternative platform for reaching millions of customers. While with advancement in digital banking, cybersecurity will remain an important challenge for all stakeholders, Das said in his address.

He further said, "Given the digitisation wave in the banking world and with the new tech-savvy customers, banks must also strike a fine balance between digital and paper based forms of communication".

He added that the simplifying disclosures and access to information and innovative deployment of tools such as chatbots to help customers navigate through the websites and mobile applications will greatly enhance the banking experience.

Banks Must Balance Between Digital And Paper Based Forms Of Communication: Das