Finance minister: Indian banks must continue to boost efficiency

Indian banks must continue to enhance operational efficiency to enhance customer services in a highly-competitive business environment, Union finance minister Nirmala Sitharaman has said.

Sitharaman was speaking at the launch of the Platinum Jubilee Celebrations for the Foundation Day of the State Bank of India (SBI) in Mumbai.

“With a surge in tech-savvy customers, there is an increasing demand for innovative, personalised and on-the-go banking experiences. Furthermore, strict regulatory compliance and the entry of new banks and non-bank entities have presented both challenges and opportunities to established players,” she added.

The finance minister virtually inaugurated 70 branches across India, 501 women customer service points, coinciding with the International Women’s Day and also launched 17 SBI corporate social responsibility (CSR) initiatives.

“As we celebrate this Platinum Jubilee, let us also look to the future. The world is changing rapidly, and the banking sector must continue to innovate and also to lead,” she said, adding that the number of banking service providers are on the rise. The customer base is expanding, with India’s favourable demographics (at median age 28) and growing aspirations, she observed.

Sitharaman also said that SBI has continuously evolved to meet the changing landscape. Despite recent disruptions and regulatory tightening, the bank has retained its position as a market leader, earning the trust of millions in a lower to middle-income economy.

The country’s largest lender is reinventing its personal distribution channels to align with evolving customer expectations. As the largest commercial bank in the world’s most populous nation, SBI is catering to about 5.6% of the global population, the finance minister said.

Unlike many organisations that resist change, SBI has embraced it. It has bolstered its infrastructure, established a robust monitoring and control framework, and built a talent pool of committed professionals, Sitharaman said. Additionally, the bank has re-engineered its internal processes to improve risk management and accelerate growth velocity.

India’s tracking taxpayers who have not filed their ITR

India’s Income Tax Department has warned taxpayers that it is using risk management strategy (RMS) software to track high-risk non-filers. It said the system analyses high-value transactions (such as property purchases and large bank deposits), plus income from salary, rent, mutual funds and shares.

The tax department said that taxpayers who have not filed their Income Tax Return (ITR) in the past few years despite having taxable income will also be tracked by the software. It said that it has identified individuals who have undisclosed income liable for income tax, and based on these findings, Income Tax Assessing Officers (AO) will take action, including sending tax notices under Section 148A, among other measures.

According to sources, the income tax department has also gathered data from multiple sources, like annual information statement (AIS), TDS/TCS records, statement of financial transactions (SFT) as well as import and export data.

Using this information, the department has identified people who had taxable income but did not file ITR.

The tax authority said the action specifically covers the financial years 2018-19, 2019-20, and 2020-21 (assessment years 2019-20, 2020-21 and 2021-22).

It added that if an individual’s income or spending exceeded the tax-filing threshold but he/she didn’t file a return, then that individual is likely on their list.

Since the deadline to file an updated return (ITR-U) for AY 2021-22 was March 31, 2024, taxpayers who have not filed their ITR have limited options, the department warned. It said: “You could apply for condonation of delay, wherein the tax department allows you to file your return late. However, in this case, approval isn’t guaranteed and may take time.

“Also, an individual, upon getting a tax notice for not filing their ITR, can stop further interest accumulation and appeal for penalty relief since they are proactively addressing the issue.”