PERCENTAGE OF RESPONDENTS WHO EXPERIENCED ECONOMIC CRIME

THREATS TO INDIAN FINANCE SERVICE INDUSTRY

By Radhika Vaze

AGENDA

FINANCE INDUSTRY :COMPONENTSOVERVIEW & RECENT TRENDSTHREAT 1) Fiscal Pressure 2) Regulatory Over-reach 3)NPAs 4)Economic Crime

ROAD AHEAD

WHAT EXACTLY DOES FINANCIAL SERVICES MEAN Financial Services are the Economic Services provided by the finance industry, which encompasses a broad range of businesses that manage money, FINANCIAL SERVICE SECTORCOMMERCIAL BANKSINSURANCE COMPANIESNBFCsCO-OPERATIVESPENSION FUNDSMUTUAL FUNDSOTHER SMALLER FINANCIAL ENTITIES

OVERVIEW & RECENT TRENDSADVENT OF TECHNOLOGY

REFORMS TO LIBERALISE, REGULATE & ENHANCE

IMPROVING LIFE EXPECTANCY RATES

VARIED SOCIAL FABRIC

GOVERNMENT INITIATIVESTHREATSFiscal PressureFALLING REVENUES(source:Economic Survey 2013: Planning commission )SPENDING ON SUBSIDIESNEED OF FISCAL CONSOLIDATION

REGULATORS OF THE FINANCIAL SYSTEM

REGULATORY OVER-REACHFSLRC recommendations Kishori J Udeshi, a former deputy governor of the Reserve Bank of India (RBI), objected to the proposed overbearing role of government regarding capital flows:P J Nayak, former chairman and managing director of Axis Bank, had a different problem: "One must view with apprehension the very substantial statutory powers recommended to be moved from the regulators (primarily the RBI) to the finance ministry and to a statutory Financial Stability and Development Council (FSDC), the latter being chaired by the finance minister.

NPATARGET ORIENTED APPROACHPRIORITY SECTOR LENDINGWEIVERS ANNOUNCEDFOR NBFC S Making NPA NORMS more stringent will harm the cause of FINANCIAL INCLUSIONGround realities of NBFCs is totally different from banks, as they mainly deal with Rural/Illiterate/unbanked/self employed section of the society.Instalments are often delayed due to peculiar circumstances of the borrowersRealisation of default amounts through legal recourse is time consumingAnomoly correction as regards NPA Provisioning under Income Tax as allowed to Bank & Financial institutions

ECONOMIC CRIME

CYBERCRIMEDISTRIBUTION OF VIRUSESPHISHING ATTACKS:THEFT OF PERSONAL INFORMATIONHACKINGROAD AHEAD

CONTINUOUS EVOLUTION EXPANSION & INTRODUCTION OF NEW PRODUCTS NEED FOR SWIFT CONSUMER ACQUISITION, QUICK FULFILMENT,USE OF TECHNOLOGY & SOCIAL MEDIA TO IMPROVE RISK ASSESSMENT & MANAGEMENT THEREBY CONTROLLING NPAS

TO ENSURE SUCCESS: NEED TO ADOPT SIMPLIFIED ,STREAMLINED,LESS TIME CONSUMING APPROACH FOR CUSTOMER ON-BOARDING WHERE SPEED OF IMPLEMENTATION IS OF ESSENCE

Bibliography

www.indianbusiness.nic.in

www.rediff.com/business

Proceedings & Recommendations: Summit on Non-Banking Finance Companies The Way Forward(23/01/2015) :Associated Chamber of Commerce & Industry Of India

FINANCIAL SERVICES SECTOR ANALYSIS PWCS 2014 ECONOMIC SURVEY

THANK YOU !