₹22,006 crore in claims. ₹6.5 crore approved for repayment. A 99.97% haircut. Yes, it is a personal guarantor case, and creditors approved the plan. But the bigger question remains: why was ₹6.5 crore considered the best possible recovery? The IBC addresses failure. Credit discipline must address what happens before failure. That is the conversation India needs.
Digital banks are transforming financial services by combining technology, convenience, and innovation to deliver seamless banking experiences without traditional branches. While they offer faster services, lower costs, and greater financial inclusion, they also face challenges in cybersecurity, regulatory compliance, and customer trust. Their future will depend on secure digital onboarding, intelligent automation, and customer-centric innovation.
The Iraqi economy, historically reliant on cash, faces a transformative shift with the Central Bank's introduction of digital banks. These banks aim to enhance financial inclusion by leveraging mobile technology, addressing traditional banking barriers. They promise quicker account setups and innovative services, aiding SMEs and fostering credit access through data history. However, robust regulatory frameworks and cybersecurity measures are essential for successful implementation and economic stability.
The Central Bank of Iraq aims to eliminate cash transactions by July 2026 as part of a major financial modernization initiative. This shift could enhance digital banking and financial inclusion but poses significant operational challenges. Iraq is developing a national payments infrastructure, including an instant payment system, a unified government payment gateway, a domestic card scheme, and a national switch. Success hinges on public adoption and the readiness of the banking sector, setting the stage for a pivotal transition.
Somewhere along the way, I learned that size in banking is often mistaken for significance. Large exposures can feel meaningful internally, yet remain invisible to the client. True relationships are not built on headline numbers or borrowed prestige, but on relevance—on whether, in the client’s world, you actually matter.
Starting December 1, 2025, Iraq's Central Bank will mandate a Prior Declaration System for imports, enhancing financial transparency and combating fraud. The system links goods with financial transactions before currency transfers, improving customs revenues and modernizing trade. Importers must precisely document and coordinate with banks and customs to comply with new requirements.
The Himachal Pradesh State Co-operative Bank suffered a major cyber fraud, losing ₹11.55 crore due to hackers compromising a customer's mobile phone. The attack involved installing a malicious app that enabled unauthorized access to the bank's systems, resulting in significant high-value transactions. This incident raises urgent concerns about cybersecurity in financial institutions, highlighting the need for improved defenses, employee training, and proper budgeting for security measures to protect customer trust and prevent operational disruptions in the future.
The corporate lending and trade finance sectors are evolving due to digitalisation, AI, and global market dynamics, creating opportunities alongside challenges. Institutional investors and private credit funds are gaining prominence, requiring agility and transparency. Financial institutions must enhance digital services to meet client expectations while addressing a looming talent crisis as seasoned professionals retire. AI is transforming operations, and tokenisation may revolutionise trade finance, although standardisation hurdles exist. Adapting to these trends is essential for success.
Open banking is revolutionizing finance by enhancing customer control over data and creating new revenue sources for banks. By sharing data through APIs, banks can personalize services, form partnerships, and innovate. Challenges include compliance and security. Success depends on embracing technology and customer-centric strategies to thrive in this evolving ecosystem.
In 1985, Hari Prasad joined a bank in Meerut and was instructed to double his department's deposits. Prompted by a peon's comment about sex workers always having money, Hari proposed to open bank accounts for this marginalized community. Despite initial resistance, the idea was successful, quickly doubling the bank’s deposits. This innovative approach proved controversial but ultimately led to financial inclusion for a typically excluded group, earning Hari the respect and support of both his colleagues and local community during a time when financial inclusion was in its early stages in India.
