Sadanand Nayak, CEO, Gopinath Patil Parsik Janata Sahakari Bank Ltd underlines the role of technology in reviving cooperative banks and bringing them at par with key commercial banks. In an interview to Elets News Network (ENN), he also throws light on the emergence and future of digital payments. Excerpts:-
How do you perceive digital payment system which has been trending in the Indian economy?
Digital payment is one of the most important developments that is being happening in the banking sector. RBI is encouraging it, NPCI is also taking it forward. From the banking sector, we are also taking necessary steps to go ahead and adopt this tred. We have already obtained permission from RBI for BBPS payments. We are in the first list of the cooperative banks. There are only six cooperative banks. We are also contemplating to start UPI and will be shortly start using UPI.
Digital payments have become a necessity than a luxury. Now that payments banks and small banks are coming up with cutting edge technology which makes other banks to introduce digital payment system at par with those who lead in that space. Nowadays people have also understood the importance of working in cash-less and paper-less society. The digital banking alone will survive in future and probably by 2020 the cheque payment system (CPS) may become obsolete. Other systems do have disadvantages like carrying cost, security and a few other things. Digital payment system needs to be simple so that people can accustom with it easily.
What strategy is being adopted by you to get friendly with the digital payment system?
There is a general perception that cooperative banks are not at par with the leading commercial banks when it comes to adoption of technology. But it’s not true. Let me explain it. In the first phase of UPI, seven out of 27 banks are cooperative banks that shows cooperative banks are exploiting technology to the fullest. We will not lag behind in terms of adoption of technology. Our board of directors has understood it very well to take all necessary steps and we are working in the right step.