Mumbai, Governor Shaktikanta Das on Friday said the Reserve Bank of India has observed that the public faces challenges in carrying out online payment transactions due to problems in the banks' systems and not in UPI or NPCI.
Das said each instance of outage is studied by the concerned officials of the central bank to analyze what caused it and added that the National Payments Corporation of India (NPCI) or the Unified Payments Interface (UPI) platform. No problems have been found in operation. By the body.
"There is no problem at the NPCI or UPI end. The problem comes from the bank end. And we have to keep that in mind as well," Das said.He said that RBI teams also check with NPCI while investigating any outage.
It may be noted that the RBI has been very strict with institutions to ensure that system down time is minimal, and has also imposed commercial sanctions on lenders like Kotak Mahindra Bank when lapses were observed.
Das said banks are making substantial investments on the technology front, but IT systems need to keep pace with overall business growth.
He urged banks to ensure that disaster recovery sites are always kept active, adding that the RBI will not dictate to lenders any level of technology spending that they need to do every year.
Deputy Governor T Rabi Shankar said several efforts were being made, including encouraging users to use UPI Lite, which frees up bank servers.Currently, 10 million transactions per month are happening on the UPI Lite platform, but as it grows, the pressure on bank servers will reduce, he said.
Meanwhile, when asked about his comments earlier in the day about some entities charging exorbitant interest rates, Deputy Governor Swaminathan J said that some entities have indeed been found indulging in it, but stressed that This is not a system-wide issue.
"Our guidelines say that the interest rate charged should be fair and transparent. I am not saying it is system-wide, but we have seen that there are some limitations in it," Das said. Between the regulator and the regulated entity.The Governor also said that some banks are not making important disclosures such as key financial details to borrowers, and such behavior has also resulted in investigation and awareness efforts by the regulator.
Commercial banker-turned-regulator Swaminathan also said the RBI will not set any specific credit deposit ratio for banks at the system level, but may negotiate with the board on the matter.
"We have requested the board to re-look at the business plans keeping in mind the widening gap between loan and deposit growth for long-term sustainability," he told reporters.
Asked about the overall outlook of non-bank lenders in the context of recent actions, Das said there is no concern on the industry and also said that action has been taken against only three such entities out of a total of 9,500.
Das said each instance of outage is studied by the concerned officials of the central bank to analyze what caused it and added that the National Payments Corporation of India (NPCI) or the Unified Payments Interface (UPI) platform. No problems have been found in operation. By the body.
"There is no problem at the NPCI or UPI end. The problem comes from the bank end. And we have to keep that in mind as well," Das said.He said that RBI teams also check with NPCI while investigating any outage.
It may be noted that the RBI has been very strict with institutions to ensure that system down time is minimal, and has also imposed commercial sanctions on lenders like Kotak Mahindra Bank when lapses were observed.
Das said banks are making substantial investments on the technology front, but IT systems need to keep pace with overall business growth.
He urged banks to ensure that disaster recovery sites are always kept active, adding that the RBI will not dictate to lenders any level of technology spending that they need to do every year.
Deputy Governor T Rabi Shankar said several efforts were being made, including encouraging users to use UPI Lite, which frees up bank servers.Currently, 10 million transactions per month are happening on the UPI Lite platform, but as it grows, the pressure on bank servers will reduce, he said.
Meanwhile, when asked about his comments earlier in the day about some entities charging exorbitant interest rates, Deputy Governor Swaminathan J said that some entities have indeed been found indulging in it, but stressed that This is not a system-wide issue.
"Our guidelines say that the interest rate charged should be fair and transparent. I am not saying it is system-wide, but we have seen that there are some limitations in it," Das said. Between the regulator and the regulated entity.The Governor also said that some banks are not making important disclosures such as key financial details to borrowers, and such behavior has also resulted in investigation and awareness efforts by the regulator.
Commercial banker-turned-regulator Swaminathan also said the RBI will not set any specific credit deposit ratio for banks at the system level, but may negotiate with the board on the matter.
"We have requested the board to re-look at the business plans keeping in mind the widening gap between loan and deposit growth for long-term sustainability," he told reporters.
Asked about the overall outlook of non-bank lenders in the context of recent actions, Das said there is no concern on the industry and also said that action has been taken against only three such entities out of a total of 9,500.