Hyderabad, May 18: To meet the demands of households and businesses, Reserve Bank of India Governor Duvvuri Subbarao on Monday advised banks to invest in newer technologies.

"We know that investment in newer technologies must be made to modernise the existing operations, to face competitive challenges and to meet customer expectations. Some of the investment will also be made with the goal of achieving cost savings, energy efficiency and environment friendliness. In the years ahead, the ability of banks to harness newer technologies, to meet the demands of households and businesses will be tested," Subbarao said on the sidelines of presenting banking technology excellence awards here.

Subbarao also said improved productivity and rising savings are facets of the country's economic growth.

Last week, the Reserve Bank of India forecast the economy would expand about six percent in the year to March 2010. It estimated the economy grew 6.5-6.7 percent in 2008-09 after growing at or above nine percent in the previous three years. (ANI)