Introduction of GST to check black money menace, says Naina Lal Kidwai

Naina Lal Kidwai, chairperson of HSBC India, said on Friday that the menace of black money must be tackled not just at the top level but at the lowest levels of the government.

While speaking at Business Today's MindRush event, Kidwai said black money  a big issue. "The solutions are not going to be easy because we have so many layers of it. We have to tackle it at every level right down to the level of municipality."

The 57-year old Kidwai said that an effective and transparent tax system, particularly the introduction of the goods and services tax (GST) will go a long way in addressing the black money menace.

On the future banking landscape, Kidwai, who studied MBA from Harvard, said India is going to have a very different banking system.

"The new players under the new banking license as Payment Banks are going to be non-bank players like telcos, retailors and banking correspondents where technology plays a big role in reaching out to customers."

HSBC India has interests in banking, asset management, insurance, equity broking and BPO.

HSBC India has a large branch network and is among the top four foreign banks in the country with large retail operations.

Kidwai said bankers will now have a much informed customers. "You (banks ) are dealing with a customer who knows more than you. The ability to shop interest rates and the ability to shop loan products is far greater."

While talking about digital economy, Kidwai said that the Internet is a tool of access to services. "It is changing the way banks relate to customers. In fact, it changes the way businesses relate to customers. Today, you (customers) can speak directly," she said.