EDITORIAL | Banking Finance | September 2025
The Indian banking sector is undergoing a complex transition-one that demands not just regulatory agility but renewed trust from the public. Recent developments highlight both progress and persisting challenges. While reforms like waiving minimum balance charges by major public sector banks aim to deepen financial inclusion, the simultaneous revelation that PSBs collected Rs. 9,000 crore in penalties over five years raises critical questions about fairness and accessibility.
The Reserve Bank of India’s proactive stance-whether through streamlining deceased account claim settlements, pushing for ISO 20022 migration, or clarifying that digital banking must remain optional-is commendable. These steps signal a broader shift toward customer-centricity and operational transparency. However, the deepening pile of unclaimed deposits, standing at over Rs. 67,000 crore, and the still-low recovery rate of written-off loans underscore the need for more accountable banking.
Cybersecurity is another pressing concern. CERT-In’s mandate for annual third-party cybersecurity audits is a welcome move in an age where digital threats can paralyse entire institutions. As banking increasingly moves online, securing customer data and maintaining digital hygiene are no longer optional-they are foundational.
The issue of wilful defaulters and massive write-offs remains unresolved. With over Rs. 12 lakh crore written off in the past nine years and only 28% recovery in recent years, there’s a need for stronger deterrents, not just cleaner books. Accountability must not be sacrificed at the altar of balance sheet optics.
This issue of Banking Finance includes in-depth analysis of these trends and actionable insights. It is our endeavour to bring to light not just the numbers, but the narratives behind them-narratives that shape policy, affect trust, and ultimately define the future of India’s financial system.
