NEW DELHI, Nov 22: The PHD Chamber of Commerce and Industry (Phdcci) has recommended strengthening of the existing Central Banking Authority (CBA).

The Phdcci has stated that addition of another authority will not help to achieve the desired objective of bringing improvement in efficiency and profitability of the financial system.

Instead, more transparency, efficiency and competition with fair play or market forces to decide the success or failure of an institution be adopted.

``Restructuring and revamping of the existing financial system, and injecting professional management with attitudinal changes in work culture and updating the technology is the need of the hour.''Revitalising the management system with an element of accountability and effective monitoring by RBI and IBA is needed. Phdcci president Binay Kumar said in a statement that political interference in the functioning of banks/FIS should cease.

Banks and FIs should function as commercial entities with autonomy to manage themselves, yet accountable to the main regulator. Social financing should preferably be done by separate institutions with budgetary support wherever necessary.

But the banks and FIs should be encouraged to assist agro-based industries, infrastructure and greenfield projects and their promotional and developmental role has to continue in the transitional period. Further, banks and FIs should introduce innovative products and services both for depositors and borrowers and diversify their activities by increasing non-fund business.

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