[caption id="attachment_12655" align="alignnone" width="262"] File Photo[/caption]
The Indian Banking Association (IBA) on Thursday portrayed a grim picture of the post-demonetization scenario for the banking sector. In a briefing to the Standing Committee of Parliament on Finance headed by veteran Congress MP Veerappa Moily, IBA representatives said banks need more aid and assistance from the Centre to cope with the post-demonetization difficulties.
They pointed out that the Centre's digitization drive has also hit a roadblock in the last quarter. The IBA requested the panel to direct the Finance Ministry to allot more aid to set up ATMs and distribute point-of-sale (POS) machines. It made it clear that without adequate backing from the government, expanding the digital network will be impossible.
At a meeting of the Public Accounts Committee in January, RBI Governor Urjit Patel had also said that the existing infrastructure, including the spectrum, is not ready for a digitization drive.
Apart from the IBA, representatives of Punjab National Bank and Oriental Bank of Commerce also met the panel.
The bankers also raised apprehensions over the cases related to non-performing assets pending in various courts.