Use big data, AI to detect fraud at PSU banks

The document, which was prepared by chief economic adviser Krishnamurthy Subramanian and tabled by finance minister Nirmala Sitharaman in Parliament on Friday, said the banking sector must scale up in tandem with the size of the Indian economy to support growth and development. The growth and efficiency of state-owned lenders, which account for over two-thirds of the banking space, is imperative for India to become a $5-trillion economy in the next five years, survey added. However, inefficient public sector banks can severely handicap the country's ability to make use of the unique available opportunities, and this could impact growth. "The state of the banking sector in India, therefore, needs urgent attention," it said. The survey said banks should also introduce employee stock ownership (ESOP) scheme and link it to the performance of employees. "Ownership by motivated, capable employees across all levels in the organization could give such employees tangible financial rewards for value enhancement, align their incentives with what is beneficial to the public sector banks, and create a mindset of enterprise ownership for employees," it added.