The GST will have no significant impact on the cost of banking services. It will help increase banking transaction and also increase
profits of the banks, said Sunil Kumar Vohra, Deputy General Manager (DGM) and Zonal Manager Bank of India, Indore zone while talking to this correspondent. Here are excerpts of this interview:
What are the new services the BoI is planning to launch?
A. The Indore Zone is spread over five districts— Indore, Dhar, Barwani, Alirajpur and Jhabua. Indore is the commercial capital of the state and also called mini-Mumbai. It has potential for all types of business, so we have certain plans for sectors like timber, cloth, readymade garments, pharmaceutical and Iron-fabrication because these units are currently functioning in the city and its nearby areas. We have chalked out some area specific loan schemes. Simultaneously, we are working to identify trade and industry of the remaining districts and also provide loans.
What are plans of BoI to increase the base of technology banking customers in this fiscal?
A.The bank has its own policy for technology banking and it will implement it in a phased-manner. Indore’s areas are fast growing urban areas and a large number of people migrate to these areas from other states. So, the city is developing as an education and medical hub. They are
growing rapidly in the city and are having their own rating at the national level. Many students are migrating to Indore for studies and to make a lucrative career. Looking at the need of the city, we have planned to implement technological up gradation in the service, which is as follow1. Promote digital banking through
- Promote digital banking through increase in number of users of Bharat QR code by educating customers and educate them about the benefits of UPI.
- Focused on payment gateway by providing digital services to various institution like-school, college, trust etc.
- Increase in customer base of internet banking users, POS machine, IMPS, IMT and Debit cards by creating awareness about benefits of those products.
- Popularize our new digital card like general purpose reloadable cards to our existing and new customers by making them aware about their benefits.
- Promote digital India concept by digitalization of village by education rural people on cashless transaction. And motivate them to use services like-USSD, mobile banking etc.
- Increase in number of PBK, CDKS, so that customer can avail these services 24*7 and avail ancillary services.?
After implementation of GST, how it’s impacting the banking sector?
A.After economic liberalization of 1991, we have experienced another revolution in the form of GST. It will affect banking sector in following ways-
- Banking sector is having two types of income— one is Interest income from loans and others but it is exempted from the GST. As regards the other income viz. commission, exchange, PPC and other services charges, the GST is applicable
- There are 3 components of GST viz. IGST, CGST and SGST/UTGST. Now, separate calculation of share of different commodities and their remittance is one of the major challenges for the banks.
- Banks require to get registered at GSTN which will require for billing from the vendors/service providers. GSTN registration certificate for the
state will also require for the banks.
- Purchase and sale of foreign currency will attract GST, this will make foreign exchange business costly.
- Banks will require many changes in the CBS system, introducing various new Menu to cope with the requirement of the GST