IDRBT Foundation Day Lecture on Banking Technology & Societies by Dr. A.P.J. Abdul Kalam
Dr. A.P.J. Abdul Kalam, Former President of India, delivered a lecture as part of the IDRBT Foundation Day Celebrations on August 27th 2013. Dr. Y.V. Reddy, CMDs of a few banks, Senior Bankers and Academicians were present on this special occasion.
Shri B. Sambamurthy, Director, IDRBT started off the proceedings of the day with his Welcome Address and the key points are as under:
- We are very delighted and honoured to have amidst us Dr. Kalam, former president of India, on the eve of our foundation day.
- When we met him a couple of weeks ago, he readily agreed to visit IDRBT. Thank you very much Sir for sparing your valuable time.
- His office gave me appointment at 9 p.m. Still there were visitors even after me. Such is his passion and commitment. If more and more top scientists/academicians/ successful business people commit such time, there would be huge cognitive surplus which can change the face of India for good.
- As we all know, he is a source of great inspiration for youth, scientists, entrepreneurs, social workers, etc. He leads by example and is very passionate about our country's growth and security.
- He has a vision for India to be a developed country by 2020. It is not just a dream or just aspiration. He has a blue print for every one of us to play a role in this noble and exciting mission. His own life journey is a classic example that definitively and positively answers the question whether India can become a developed country. Through hard work, perseverance and dedication he went on to become top space scientist/missile technologist.
- In fact, India is in the comity of developed countries in the field of space science. When Rohini was launched in 1980, India was among the four nations globally who have satellite launching capabilities. If similar success is replicated in other strategic industries, there is no doubt India would be a developed country in all the dimensions. He has amply demonstrated the potential of our people and country to excel.
- Sir, at IDRBT, we have a twofold mission. One, to add to the body of knowledge through publications, papers in conferences. The second is to convert the available scientific and technological knowledge into practice through various products particularly to facilitate and grow electronic payments in the country. The INFINET and SFMS are some examples.
- Recently we have set up a pilot project on community cloud using open source and already six banks have hosted some of their applications. We plan to roll out this service.
- As a thought leader, IDRBT has started developing standards and frameworks to help the banking industry improve technology management and get better value from their technology investments.
- If Dr. Kalam envisioned health care for all, education for all, Dr. Y.V. Reddy envisioned Banking for all. It is Dr. Reddy who conceptualized Pondicherry pilot project of opening bank accounts for all the adults and it was done successfully executed even before formal financial inclusion program was launched by RBI/GOVT. I heartily welcome Dr. Reddy.
Foundation Day Lecture on "Banking Technology and Societies
Delivering the Foundation Day Lecture, Dr. Kalam shared his vision for an emerging India. The key points made by him are as under:
- Reaching the Unreached: Broadband technologies and banking technologies coupled with ICT implementation has to provide secured and easy banking services as visualized to the rural citizens at lesser interest rates. Rural banking should become the partners in the rural innovation eco-system. When banks become partners to the Small Scale Industrial entrepreneurs, SME entrepreneurs and Self-Help-Group entrepreneur, certainly the economic growth will be on higher trajectory and will meet the global demand from the local products with technology infusion.
- Rural Banking and secured e-Governance: By 2020, India will be transformed into a knowledge society. That means the whole banking sector will be operated by knowledge e-governance products having G2B (Government-to-Banks), B2B (Banks-to-Banks), B2C (Banks-to-Citizens) over the cloud computing infrastructure and distributed by knowledge based secured network system.
- Banking and Cyber warfare in the Knowledge Society: Once the nation becomes the knowledge based society – the complete future warfare from what it is today will get transformed into knowledge warfare through cyber warfare. Regular electronic intelligence collection and manual intelligence gathering has to be strengthened. Most important aspect should be to strengthen our cyber warfare technologies with the capability to penetrate any kind of network which operates the adversaries' strategic command. When we encourage mobile banking, mobile commerce and internet banking and internet commerce, the technology has emerged to track the behavioral pattern of the mobile usage and money transaction to analyze the fraudulent activities across the country and borders.
- Distinctive Profile of the Nation: Dr. Kalam visualizes the following distinctive profile for India by the year 2020.
- A Nation where the rural and urban divide has reduced to a thin line.
- A Nation where there is an equitable distribution and adequate access to energy and quality water.
- A Nation where agriculture, industry and service sector work together in symphony.
- A Nation where education with value system is not denied to any meritorious candidates because of societal or economic discrimination.
- A Nation which is the best destination for the most talented scholars, scientists, and investors.
- A Nation where the best of health care is available to all.
- A Nation where the governance is responsive, transparent and corruption-free.
- A Nation where poverty has been totally eradicated, illiteracy removed and crimes against women and children are absent and none in the society feels alienated.
- A Nation that is prosperous, healthy, secure, peaceful and happy and continues with a sustainable growth path.
- A Nation that is one of the best places to live in and is proud of its leadership.
- Integrated Action for Developed India: We have identified five areas where India has a core competence for integrated action: (1) Agriculture and food processing, (2) Reliable and Quality Electric Power, Surface transport and Infrastructure for all parts of the country, (3) Education and Healthcare, (4) Information and Communication Technology and (5) Self reliance in critical technologies. The major mission is the development of infrastructure for bringing rural prosperity are through Provision of Urban Amenities in Rural Areas (PURA) through creation of three connectivities namely physical, electronic, knowledge leading to economic connectivity. The number of PURA for the whole country is estimated to be 7000. Particularly when the banking is planning to reach the unreached, PURA is another vehicle, which can bring sustainable rural development.
- PURA as a Sustainable Development tool and PURA Corporation: The need of the hour is the evolution of sustainable systems which act as "enablers" and bring inclusive growth and integrated development to the nation. The banking system of the nation has an important role to develop the key technologies needed for funding and creating local core competence and promote entrepreneurs at the rural and town levels.
New Millennium Financial System
The success of inclusive banking in the form of Self Help Group against the earlier credit-cum-subsidy programmes of government, could not finally achieve the desired outcome. Other strategic initiatives such as Rural Infrastructure Development Fund (RFID) in NABARD, Small Industries Development Bank of India (SIDBI) and their focus will be on inclusive banking and financing.
Welcome Address of the Director
To realize the desired inclusive social development as an outcome of economic growth of a nation, people have to be skill-enabled and knowledge-enabled and it is essential to elevate them with competitiveness by creative a level playing by creating an inclusive development ecosystem.
In the given scenario, what is the role of Banking Technology? Banking Technology can empower banking services with a mobile telephone, a Personal Digital Assistant (PDA) and the capacity to mobilize rural savings and rural insurance. This combined with promotion of Savings and Life Insurance will bring social security at the door step of the villagers. This will be vital for enhancing the GDP of the nation to double of the current level in the next 5 years.
He suggested that the Institute form a research group to study the economic crisis that started in USA, followed in Europe, continued in Europe and spread throughout the world and develop a tool to forecast these kind of crises and suggest methods for its avoidance.
He concluded by stressing the need to nurture Creative Leaders one who coaches, mentors, delegates and facilitates self-respect. For a vibrant inclusive finance sector, the important thrust will be on the generation of a number of creative leaders who will pioneer the promotion of financial inclusion both in rural and urban areas of the countries with imaginative use of technology and innovation.
Dr. Kalam also interacted with the Research Scholars and students of on the occasion.
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Dr. Kalam's Foundation Day Lecture and interaction with students.