New Banking entity will create jobs in India

jobs in India

Lavleen kaur kapoor

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Read: Each New Banking entity will create jobs in India
On April 1, 2014, the Election Commission (EC) gave approval to the Reserve Bank of India (RBI) to proceed with licensing a third set of private banks. The last time that RBI licensed new banks was between 2003 and 2004 when it decided to let Kotak Mahindra Bank and Yes Bank into the market. It is hoped that the current licensing will help India’s central bank to expand the reach of the Rs 84 trillion banking industry.
Last week, the RBI granted bank licenses to Bandhan Financial Services and Infrastructure Development Finance Company (IDFC). There are over 20 companies in the race for new banking licenses and it is said that 1,500 to 5,000 jobs are likely to be created in the next two years for each new banking license awarded by the RBI.
Some of the areas where extensive hiring is likely to take place are retail banking, credit, technology, operations, branch banking, risk and treasury. And since India is focusing on financial inclusion, jobs are expected to open up in smaller centers.
There will be a huge demand for people who have worked in tier 2 and 3 cities and rural areas as they will be able to understand the issues pertinent to financial inclusion. Currently, less than 30 percent of the Indian population has access to bank accounts.
So, there is a lot to be done in the banking and financial sectors in India. The rural markets are untapped and by expanding and venturing into these markets, the banking and financial sectors will be able to witness growth and profitability.
At IDFC alone, there have been key appointments, including that of the group head of new initiatives and the COO – Ajay Mahajan, former banker and financial services entrepreneur has been appointed the group head of new initiatives and Avtar Monga, veteran banker, has been named the COO.
These new licenses will give rise to a number of backend jobs too, including those in processing and outsourcing. Every time a new entity is formed, jobs will be created not only in the entity but in other organizations linked to this entity. And this is exactly what is happening with the licensing of new banks.
It is hoped that with the establishment of new banking entities, the unemployment rate in India will reduce. Reports claim that in the next two years, a number of people working in banks will be retiring and this will increase the demand for employees at various levels. India will witness a sharp increase in employment in the coming years and the growth and profitability of the banking and financial sectors are imminent.
In any developing country, there is a huge scope for the growth of various industries. And this is what the RBI is planning to achieve by providing licenses to new banks. With an influx of new banks comes competition and this leads to greater productivity. So, by providing licenses to new banks, India will not only see a rise in the employment rate but it will also see a stark increase in the service quality.
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