Indian credit card issuer's high CTI and low tech spend

Banking customers have often wondered why cheque clearance takes days when digital transactions complete in seconds. Today, with RBI's introduction of faster cheque clearing, that wait is being dramatically shortened. The recent RBI announcement states, "From now on, banks will pass/return cheques on the same day. Customers will get credit on the same day." Even more significant, effective January 3, 2026, "banks will pass/return cheques within 3 hours. Customers will get credit in a few hours." This change means instant fund availability, improved convenience, and reduced delays, elevating both customer and employee experience in banking. RBI’s initiative encourages everyone to “keep adequate balance to avoid cheque bounce,” urging proactive financial responsibility. For finance professionals and CX leaders, these developments signify a renewed commitment to operational excellence and real-time customer service. It is a paradigm shift transforming back-office functions into strategic drivers of customer satisfaction. As India's financial ecosystem moves toward greater digital integration, Reserve Bank of India (RBI)’s cheque clearing reforms stand as a milestone in responsive service delivery. Stakeholders across the sector must appreciate the technological advancement and address challenges in staff training, process automation, and communication for seamless transitions. https://lnkd.in/g8Kra4w3 #ChequeClearing #BankingInnovation #CustomerExperience #RBI #FinanceTrends #DigitalTransformation

As India's financial ecosystem moves toward greater digital integration, Reserve Bank of India (RBI)’s cheque clearing reforms stand as a milestone in responsive service delivery. Stakeholders across the sector must appreciate the technological advancement and address challenges in staff training, process automation, and communication for seamless transitions. https://lnkd.in/gm-5yS_j #ChequeClearing #BankingInnovation #CustomerExperience #RBI #FinanceTrends #DigitalTransformation

Beyond Digital: Why Bank Branches Still Matter J Madegowda DOI: 10.71329/IUPJBM/2025.24.2.54-86 © 2025 IUP. All Rights Reserved. * Professor, Department of Business Administration, Vidyavardhaka College of Engineering, Gokulam III Stage, Mysuru 570002, Karnataka, India. E-mail: jmadegowda@vvce.ac.in; madegowdaj@gmail.com. This study explores the continued relevance of branch banking in the context of fintech integration by analyzing perspectives from bank customers and officers. Using Factor Analysis, the study evaluates responses across six service dimensions—security, accessibility, personalized assistance, fraud prevention, customer support, and geographical connectivity. The results indicate a strong consensus on the enduring importance of branch banking, especially in areas with poor digital infrastructure and among customers with limited digital literacy. Both customer and officer responses emphasize the role of branches in ensuring secure transactions, fostering trust, and delivering tailored services for complex financial needs. Despite the rise of digital platforms, physical branches remain critical for supporting nderserved populations and maintaining inclusive financial access. The findings support the adoption of hybrid banking models that integrate fintech innovations with human-centric branch services. Practical implications include training staff to manage high-stakes, personalized interactions and enhancing digital-physical synergy in service delivery. This study contributes to the growing discourse on digital transformation in banking by highlighting the sustained value of physical branches and offering a strategic framework for balancing digital efficiency with traditional relationship-based service.

💥 The End of Post-Dated Cheques: India Enters the Real-Time Clearing Era 🚀 History in the Making: RBI Just Redefined Banking Efficiency The Reserve Bank of India has officially rolled out its Continuous Clearing and Settlement System (CCSS) as of October 4, 2025 — officially marking the end of post-dated cheque clearing in India. This move slashes cheque settlement time from 1–2 business days to just a few hours — on the same day. A transformation decades in the making 👇 🕰️ The Evolution of Cheque Clearing in India Pre-1980s: Manual processing took up to a week 1980s: MICR sorting cut it down to 1–3 days 2008: Cheque Truncation System (CTS) → same-day clearing 2021: Nationwide T+1 standardization 2025: Real-time settlement within hours ⚡ ⚙️ How the New System Works Phase 1 (Oct 4, 2025 – Jan 2, 2026): 🕓 Cheques deposited between 10 AM–4 PM processed continuously ⏱ Hourly settlements starting 11 AM ✅ Banks must confirm by 7 PM (else auto-approved) Phase 2 (From Jan 3, 2026): 📅 T+3 hours rule — confirmation within 3 hours 💸 Funds credited within 1 hour post-settlement 💳 The Digital Context Cheque usage has declined sharply post-COVID — dropping 10% between 2019–2024 — yet they remain crucial for: 🏢 Corporate and government payments 🤝 Joint ventures, MSMEs, co-ops 🏫 Educational institutions 📄 Auto-debit mandates Meanwhile, UPI hit 20 billion transactions in August 2025 (worth ₹25 lakh crore 💰), and RTGS value transfers grew 12% in the same period. ⚠️ Initial Teething Issues As with any large-scale rollout, early challenges include: 👨💼 Staff training gaps 🖨️ Scanning quality issues 💻 Technical glitches …but the system is expected to stabilize quickly as banks adapt. 💼 What This Means for Businesses ✅ Faster cash flow: Same-day fund availability ✅ Better liquidity: Predictable settlement cycles ✅ More secure: Positive Pay mandatory for cheques > ₹50,000 ✅ Uniform nationwide speed: Consistent clearing times across all banks 🌏 A Step Toward Smarter, Self-Reliant Banking This milestone reflects India’s continued commitment to modernize traditional payment rails while expanding a world-class digital payments ecosystem. As physical and digital banking converge, one thing is clear — financial innovation in India isn’t slowing down anytime soon. 💬 What are your thoughts on this banking transformation? How will real-time cheque clearing change the way your business manages cash flow? #RBI #BankingInnovation #DigitalPayments #FinTech #IndianBanking #PaymentSystems #FinancialServices #ChequeClearing #RealTimePayments #IndiaRising

Day 15/100 “Citibank India – From Retail Legacy to Institutional Focus” Today, we will discuss Citibank India, which has been one of the largest foreign banks in India for more than a century before its exit from retail. 🔹 Citibank India overview Founded in 1902, it is one of the oldest foreign banks in India. Prior to exiting retail, it was the largest foreign bank by both assets and customers. It offered services in consumer banking (such as credit cards, deposits, and safety deposit boxes), corporate banking, and wealth management. 🔹 Retail Exit (2022 - 2023) Axis Bank bought Citibank's retail business (credit cards, wealth, and deposits) for ₹12,325 Cr. The transfer of the retail business to Axis bank took effect in March 2023. 🔹 Current presence At present, Citibank is focused on Institutional Banking, which consists of corporate and investment banking, interest rate and foreign exchange treasury, and global trade solutions. Citibank branches can be found in all of the largest hubs in Mumbai, Delhi, Chennai, Bengaluru, Pune, and Kolkata. 🔹 Credit Card Legacy Before the transition to Axis Bank, Citi was operating approximately 2.5 Millon credit cards. Citi's two flagship credit cards were Citi PremierMiles & Citi Prestige. 🔹 Digital | Innovation McKinsey has reported that Citi was a leader introducing ATMs, internet banking, and digital payments. Strong offering in both global cash management & treasury products. 🔹 Global Context Citi operates in over 160 countries and considers India a strategic institutional market. 📌 Key Ratios (Pre-exit FY21) Deposits: approximately ₹1.65 Lakh Cr Advances: approximately ₹66,500 Cr CASA: approximately 40% NPA: < 1% (one of the best in the industry) 📍 Key Takeaways (Cut-Out Box Style) ✅ 1902 → Citi enters India ✅ Largest foreign bank in India (pre-exit) ✅ Retail business sold to Axis (₹12,325 Cr) ✅ Still strong in institutional Banking ✅ Leader in credit cards & digital banking ✅ India = strategic market for Citi.

🎯 Unpopular opinion: The next big disruption in Indian banking isn't UPI or BNPL. It's the humble co-branded credit card. Here's the $2.3B opportunity nobody's talking about: 💥 Co-branded cards are quietly crushing regular credit cards: • 60% lower acquisition costs • 70% activation rate (vs. 50% for regular cards) • 20% higher customer spending But here's the plot twist... Banks are leaving money on the table. Why? It's not demand - it's their tech stack holding them back. Legacy systems simply can't handle the complexity of modern co-brand partnerships. 🔍 The hidden opportunity? Tier 2/3 markets are untapped goldmines. Think beyond metro cities. Healthcare, rural brands, regional powerhouses - all waiting to be partnered with. 💡 Having worked with banking tech, I can tell you: The winners will be banks who crack the "personalization at scale" code. 🤔 Question for my network: Which unlikely brand partnership could create the next killer co-branded card?... 📖 Read full article: https://lnkd.in/gePrg-XW #FinTech #DigitalBanking #CreditCards #IndianStartups #BankingInnovation #FinancialServices #StartupIndia #PaymentTech

RBI’s New Rule: Same-Day Cheque Clearance — Faster, Smarter Banking The Reserve Bank of India (RBI) has announced a landmark rule requiring banks to clear cheques on the same day they’re deposited. This reform marks a major step toward modernizing India’s banking system and aligning traditional payments with digital speed. For years, cheque clearances took 2–5 days, often delaying payments and disrupting liquidity — especially for small businesses and traders. The new rule aims to end this inefficiency by using image-based cheque truncation systems, real-time data exchange, and automated risk controls, ensuring faster and safer processing. Benefits for customers: • Quicker fund availability and better cash flow. • Real-time status updates through banking apps. • Reduced uncertainty and improved trust in banking. However, banks will face short-term challenges like upgrading IT systems, training staff, and strengthening fraud detection. This initiative reflects RBI’s broader mission — to create a seamless, tech-driven financial ecosystem where traditional and digital payment systems work in harmony. In essence, same-day cheque clearance is more than a convenience — it’s a step toward a faster, more efficient, and customer-centric banking future.

📶 India’s Banking Story Enters a New Phase: Emirates NBD’s $3B Bet on RBL Bank ▪️ In one of the most significant cross-border financial developments this year, Dubai’s Emirates NBD announced a $3 billion acquisition for a 60% stake in RBL Bank — marking its largest investment in South Asia to date. But beyond the numbers, this deal represents something far larger: ▶️ A strategic re-rating of India’s financial ecosystem — from being a high-growth banking market to becoming a wealth management powerhouse. ➡️ RBL Bank, once known primarily for its retail and SME presence, will now pivot towards wealth management and investment services, leveraging Emirates NBD’s strong global expertise. ➡️ The deal introduces a global bank’s capital, risk systems, and digital frameworks into India’s financial architecture — a step that could enhance efficiency, governance, and innovation. ➡️ It also reflects India’s evolving financial maturity — moving from traditional savings to diversified investments, mutual funds, insurance-linked wealth products, and portfolio management. ▶️ Why It Matters for India ➡️ Capital Inflow → $3 billion in direct foreign investment adds liquidity, strengthens RBL’s balance sheet, and fuels credit growth. ➡️ Skill and Tech Transfer → Emirates NBD brings sophisticated risk analytics, AI-driven client servicing, and high-end wealth platforms. ➡️ Job Creation → Wealth advisory, portfolio management, financial analytics, and digital banking roles will see stronger demand. ➡️ Economic Multiplier → Every $1 of financial service investment creates ripple effects across fintech, compliance, consulting, and infrastructure. ➡️ India’s Global Positioning → Strengthens India’s role as the next big financial hub in Asia, bridging Middle East capital with Indian growth potential. ▶️ The Flip Side (Challenges) ➡️ Cultural Integration: Aligning RBL’s domestic retail focus with Emirates NBD’s global structure could be complex. ➡️ Regulatory Oversight: RBI may scrutinise cross-border governance, liquidity norms, and foreign control. ➡️ Competitive Pressure: Larger Indian private banks like HDFC, ICICI, and Axis already dominate high-value segments; catching up won’t be easy. ➡️ Execution Risk: Transitioning from retail banking to wealth-focused models requires technology, talent, and time. 💠 The Broader Picture ▪️ This deal isn’t just about ownership — it’s about India’s financial evolution. The shift from saving to investing, from deposits to wealth creation, from physical branches to digital ecosystems — it’s all accelerating. #RBLBank #EmiratesNBD #IndianEconomy #BankingTransformation #FinanceCommunity SOVON PAUL || LinkedIn

Revolut's UK banking license is being held up by the PRA. This is urgent but also INCREDIBLY hard mode. They're trying to navigate the largest bank mobilization in UK history. A company that already has 65M customers globally is asking permission to fully operate in its home market." --- The FT reports the PRA is holding up Revolut's full UK banking license over 'concerns about whether risk controls can keep pace with rapid overseas expansion." --- Revolut isn't a startup asking for a license to grow into. It's a global operation asking the UK to catch up. - 65M+ customers worldwide - 38+ countries - Already operating with a restricted license since 2024 - Bigger customer base than most traditional UK banks --- The PRA has never tried to mobilize something like this. Their framework was built for banks that: - Grew 5% annually over decades - Had physical branches in each market - Expanded sequentially, not simultaneously Revolut grew 5,000% and operates everywhere at once. --- The PRA needs to be thorough. A systemically important bank failure would be catastrophic. Revolut needs to move. Every quarter of delay costs market position. But here's what nobody's saying: "Adequate risk controls for a global digital bank" may look completely different than traditional banking risk frameworks. Traditional banks have: - Local compliance teams in each market - Decades of operational history - Lower transaction velocity Revolut has: - API-driven compliance - Real-time monitoring across jurisdictions - Exponentially higher transaction volumes These aren't the same animal. --- If you were designing banking regulations today for a global-first digital bank, what would you measure differently? Because the answer to that determines whether this takes 6 months or 3 years.

Global Banking in 2025: Navigating Uncertainty, Reclaiming Trust The global banking sector in 2025 stands at a crossroads—where resilience meets reinvention. Amid economic headwinds, regulatory shifts, and technological disruption, banks are redefining their purpose and their place in society. 🔄 Uncertainty Is the New Normal According to EY’s Global Banking Outlook, 2025 will continue to be shaped by uncertainty—geopolitical, regulatory, economic, and technological. Yet, banks have shown remarkable resilience, with profitability (ROE) expected to remain in double digits. The challenge now is sustaining that profitability while investing in strategic transformation. 💡 Top Trends Reshaping Global Banking Accenture and Forbes highlight ten transformative trends: AI Restores the Human Touch: Generative AI is reversing the impersonal nature of digital banking, enabling emotionally engaging, hyper-personalized experiences3. Banking for All: Digital platforms are making banking universally accessible. Nubank in Brazil, for example, serves over 100 million customers at less than $2/month per customer. Rise of Non-Banks: Regulatory pressure is pushing borrowers toward private credit and fintechs, forcing traditional banks to rethink their strategies3. Scale as a Superpower: Large banks are leveraging global reach and tech efficiencies to outpace smaller rivals. Embedded Finance & BaaS: Banks are becoming platforms, offering services through third parties and fintech ecosystems. 📉 From Margin Expansion to Loan Growth With interest rates expected to decline by 70bps globally, banks are shifting focus from margin gains to loan growth. Forecasts suggest a 6% rise in global loan demand in 2025. 🌐 Strategic Imperatives for Banks To thrive in this evolving landscape, banks must: Invest in AI and cloud technologies to drive efficiency and personalization. Rebuild trust through transparent, empathetic customer engagement. Collaborate with fintechs and non-traditional players to expand reach. Adapt to regulatory shifts while maintaining risk resilience.