Parliamentary panel raises concern over dip in CASA ratio for banks

The standing committee also emphasised that by fostering a secure banking ecosystem and prioritising technological advancements

The Standing Committee on Finance in its report tabled on Wednesday suggested that banks should diversify funding sources, optimise operations and leverage artificial intelligence (AI)-driven automation to enhance efficiency, reduce costs and drive digital banking innovations in response to the decline in current account savings account (CASA) deposit ratio.

 

“The committee understands that the decline in financial savings presents a liquidity challenge for banks, limiting access to low-cost funds. The committee opines that the adoption of advanced technologies, including AI and machine learning, will not only improve operational efficiency but also enhance competitiveness and customer engagement,” the standing committee said