In view of recent spurt in technological mishaps, RBI has proposed a new requirement for banks 'Know Your Employee,' which highlights the urgent need for banks to know employees very well," G Padmanabhan, chief general manager, RBI said at Bank Tech Summit in Mumbai.
"This process is to be enforced not only prior to the recruitment of the employee but even more vigorously thereafter," he cautioned.
Referring to the bank's annual policy statement 2005-06, which proposes bringing out a financial sector vision document aimed at providing banks with inputs on the approach being taken by the regulatory bank for the implementation of IT for the financial sector, he said that RBI has decided to move away from the prescriptive role to that of a guide.
"The vision of RBI in respect of the financial sector will enable banks to carve out their path towards implementation of IT-based systems at their end, which would synchronise with the RBI plans for the medium term of three to five years," Padmanabhan said.
However, the benefits ushered in by technology should spread to the rural sector, which has 'tremendous potential to sustain the growth of the economy at large and of banking sector in particular', he added.
There is also a need for optimal marriage between technology and traditional forms of banking, he said adding, the customers still prefer a face-to-face discussion oriented approach towards financial decision making.
