Banks at disadvantage to mutual funds, says IBA chairman

The Chairman of the Indian Banks’ Association (IBA) has voiced concerns about the competitive disadvantage banks face compared to mutual funds. The IBA argues that mutual funds benefit from regulatory advantages and greater flexibility, which puts banks at a disadvantage in attracting and retaining investments. This disparity affects banks' ability to mobilize deposits and compete effectively in the financial market. The IBA is calling for regulatory reforms to address these issues and create a more balanced playing field. The statement highlights ongoing tensions between different financial sectors and the need for regulatory adjustments to foster fair competition.