Frank Knight, an economist, formalised a distinction between risk and uncertainty in his 1921 book, Risk, Uncertainty, and Profit. In his classic book, Knight introduced a distinction between measurable uncertainty, which he called “risk,” and “true uncertainty,” which cannot “by any method be reduced to an objective, quantitatively determined probability.”
Digitalization and digitization, while often used interchangeably, refer to different concepts: the former represents the use of digital technologies to change a business, while the latter designates the transition from analog to digital forms. The banking sector exemplifies a field facing a shift towards pervasive digitalization, facilitating branchless banking and providing enhanced customer services. However, challenges such as regulatory restrictions and digital skill gaps persist. This digital transformation in banking is seen both as a challenge and an opportunity for future growth.
Public sector bank employees in India went on strike, impacting the services of approximately 80,000 bank branches. The strike was in response to potential consolidation of public sector banks through mergers. This follows a previous merger in 1993, when the New Bank of India merged with Punjab National Bank. Further consolidation has been announced in recent budgets, with the goal of reducing the number of public sector banks from 27 to between eight and ten. Nonetheless, concerns regarding the levels of non-performing assets at these banks have led some to question the timing of these consolidations.
Indrajit Roy Choudhury 