Secondly, although technology deployment in banks has increased remarkably, this has not been leveraged to the maximum extent essential to achieve and maintain high service and efficiency standards. In effect, managing technology, is still a key challenge for Indian banks. We have, therefore, had to settle for just the standardised approach under Basle II.
We need to move to advanced approaches under Basle II in order to achieve greater efficiency of capital and be competitive in India as also globally. For this, banks not all but certainly the large and significant banks need to invest heavily in advanced technology which is another item of expenditure that cannot be avoided in the near future.