The Management Accountant - January 2024
The pioneering Journal of the Institute, “The Management Accountant” has been published since January 1966. It is being published regularly keeping in mind the needs of the Cost and Management Accountants (CMA) and provides wide knowledge on the recent developments and changes in the global, national, financial and economic scenario. The rich contents in the Journal keep informed the readers of sound professional ethics and keep them abreast of new developments.
6 The Management Accountant - January 2024
www.icmai.in
Banking in India: Emerging Challenges and Preparedness of this sector
t the outset, let
me wish you
all a VERY
HAPPY AND
PROSPEROUS YEAR 2024.
D e s p i t e
n u m e r o u s
achievements, the banking
industry in India faces various
challenges- regulatory changes,
cyber security risks, increasing
competition from new digital
players, fintech disruption,
economic uncertainty and
management of NPA. To
address these challenges banks
collaborated extensively with
fintech companies, leveraging
their technology to offer
innovative services like instant
loans, digital KYC and AI-driven
customer support. Digital
wallets and payment systems,
especially Unified Payments
Interface (UPI), saw a significant
increase in adoption, driven by
the convenience and security it
offered. The RBI’s introduction
of ‘Digital Rupee’ trials marked a
new era in the country’s financial
technology landscape, potentially
revolutionizing how transactions
are conducted.
The Reserve Bank of India has
been playing a crucial role, with a
series of policy rate adjustments
aimed at balancing growth and
inflation. Regulatory changes
introduced this year had a
profound impact on banking
operations.
Looking ahead, the banking
sector is expected to continue
its trajectory of growth and
innovation in 2024.
The articles covered in the
current issue are aimed to equip
readers with facts and issues
on Banking in India: Emerging
Challenges and Preparedness of
this sector.
Here’s a glimpse of the articles
featured in this issue
Concurrent Audit of Credit
Proposals (Credit Risk
Management - CRM) analyses
various guidelines that are to be
adhered to in the “credit process
of loan proposals” The role of
the concurrent auditor is to audit,
whether the Branch is following
the laid instructions / guidelines.
CMAs are playing a very
important role in maintaining the
asset quality of the Bank. CMA’s
Role in Bank Credit Appraisal
and Monitoring Framework
discusses the role of CMAs in
credit appraisal. In this article,
the emphasis is mainly on home
loans and mortgage loans.
Digital Lending refers to the
use of technology and digital
platforms to provide financial
services, particularly loans to
customers. Digital Lending (A
Way Forward) seeks to provide
an overview of RBI regulation
in the ‘Digital Lending Market’
Working capital is the lifeline
of business / manufacturing
organizations. Stock & Book
Debts Audit of Banks (Working
Capital / Cash Credit Loans)
gives a comprehensive analysis
of stock and book debts audit.
Few examples of ‘Cost
Reduction Tools / Strategies’
have been outlined in the article
Control ‘Electricity Costs’ of
Banks (Through ‘Energy as a
Service’ (EaaS) Model)
Digital Rupee in India aims for
an inclusive and efficient financial
system of the country. “e`”
Central Bank Digital Currency
covers different aspects of digital
rupees.
New Era of “Expected Credit
Loss Provisioning in Indian
Banking Sector attempts to
highlight that banks must provide
provisions for ‘expected credit
losses’ from the time of loan
sanctioned or disbursed, not
waiting for the loan to turn into
NPA.
T h e
r e s e a r c h
p a p e r
Sustainability Reporting in
the Banking Sector: Exploring the Trends
and Unraveling the Impact on Financial
Performance focuses on sustainability reporting
adopted by the Indian private sector listed
banks in terms of prominent sustainability
disclosures.
Legal Framework for Grievance Resolution
in Banking Industry in India has discussed
various guidelines issued by RBI to the Banks
for the protection of the customers and the role
of Consumer Commission in compensating
customers in case of deficiency of service.
Merger and Acquisition in Indian Banking:
A Retrospective Analysis focuses on the
financial, operational, and strategic aspects
of merging organisations and examines how
this transformational journey affects financial
inclusion and banking services.
Following the global trend, RBI is going
to introduce expected credit loss based
provisioning system in Indian banks. The
article Understanding Mechanisms of Expected
Credit Loss (ECL) Based Provisioning of Bank
Loan concludes that new ECL regime will
be opening a new vista for practicing CMAs
for which they need to be well prepared
beforehand.
Apart from these, this issue contains articles
on various other contemporary matters.
It is hoped that the articles featured in this
issue will enrich your knowledge to a great
extent. I thank all the contributors for value
addition to this issue
This issue also features an interview
by CMA (Dr.) Ram Jass Yadav,Executive
Director,Punjab & Sind Bank, New Delhi.
I earnestly solicit your constructive
comments and views for further improvements
in the journal through editor@icmai.in.
Once again wishing you all a professionally
rewarding 2024.
From the Editor’s Desk
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