Impact of Technology in Banking Sector

"Technology-basedproducts are a boon for financial inclusion, and this has rapidly become thego-to criteria for development. This realisation has also seen the Reserve Bankof India introduce many technology-based products in the country. Newtechnology based products helped the Government and the RBI in their financialinclusion mission on one hand, but ended up creating potential for fraud, moneylaundering and terrorist financing. The threat thus posed to the financialsector has led the RBI to issue guidelines for KYC Norms/ AML Standards/ CFTobligations, among others to prevent banks from being used, intentionally orunintentionally, criminal elements for nefarious activities. However, thesesporadically updated critical regulations make it difficult for bankingemployees to keep up with in the modern day busy lifestyle. This is prone toleave them vulnerable to organizational action and serious legal implicationsin case of deviance from prescribed procedures as the system fails to recognizeignorance as an acceptable excuse.