Today's news belongs to privacy and individual freedoms, yet again. First a celebrity writer/socialite in India is asked to apologize for her thoughts on the possibility of other regions demanding independent statehoods; such calls for retraction and contrition are now routine in the Indian social media scene. 

The more interesting - or shocking, depending on which side you're on - news is that we now have what else, Google Now, which can anticipate your needs and set your life in rigorous order by reading your emails, scanning your calendars and tracking your travel schedule. Thereby eliminating all possibility of dodging a tiresome con call. 

Then there's Russia which plans to equip Moscow's subway stations to read commuters' mobile phone data. Ostensibly, to track stolen phones. Well.

If that's creeping you out, then take heart from a Vancouver firm which has developed a senior-friendly tablet device to enable the elderly keep track of their health and medication, and also keeps a caregiver network in the loop. The gadget aptly named "Companion", apparently alleviates loneliness  and the feeling of isolation without infringing privacy. Nice.

So it all comes down to which Big Brother is watching, doesn't it?

Today's headline about 22 banks being fined for not complying with KYC norms will surely give many of us - who have been harassed at some point or the other on account of that law - perverse pleasure. Although at this point, the banks have been cleared of any money laundering-related wrongdoing, some lapses, like the non reporting of cash transaction reports and cash sales of gold for amounts greater than Rs.50,000, are surely cause for concern. 

India recently drew praise from global watchdog FATF (Financial Action Task Force) for addressing several weaknesses in its regulatory mechanism to control terror financing and money laundering. Notwithstanding the low rate of conviction, this is encouraging news. But at the same time, banks' NPAs are raging; 39 listed banks reported a 51% rise in NPAs in FY 2012-13 over FY 2011-12. And stories of lending to dubious industrial houses are legend.

So obviously we have a lot of ground to cover on the KYC front as well as on knowing what our customers are all about. The fine is a mere slap on the wrist and  stricter action is needed. That is likely to create collateral damage in the form of more procedural pain for individual customers. But that's a price that has to be paid.

The big banking news of the week was the closing of applications for new licenses. After much last minute scrambling, the list of applicants totaled 26, an eclectic mix of conglomerates, NBFCs and India Post, the country's postal service.

Banking licenses have been debated and desired in India for years. Now that they're imminent, are they really the opportunity they're made out to be? New banks have it tough - a crawling economy; poor credit environment; a business that survives on razor thin margins; and stiff regulatory conditions, such as 13% Capital Adequacy, operationalization within 18 months, and a branch network that's 25% rural.

These conditions favor those entities which have already built an asset book and rural distribution network. Hence one would have thought that Shriram Transport Finance Company, with its dominant position in a niche business like used commercial vehicle (truck) finance would have a natural advantage. But by insisting that NBFCs (STFC is one) give up their status and conform to CRR/SLR mandates straight off the bat, the RBI has managed to deter or deflect such institutions (Mahindra and Mahindra Financial Services backed out and the Shriram application came from holding company Shriram Capital and not STFC).

That leaves India Post, a behemoth with an unparalleled network and rural savvy. Will that be enough to counter its total lack of banking knowledge and soft skills? And what's bridging this deficit going to cost?

Its unclear who's going to benefit from the new banking license. Let's hope someone does.