NEW DELHI: On Monday, Finance Minister Nirmala Sitharaman led a critical meeting in Delhi to assess the performance of Public Sector Banks (PSBs). The session, held with Dr. Vivek Joshi, Secretary, M Nagaraju, Secretary-Designate of the Department of Financial Services (DFS), and top officials from the DFS and PSBs, aimed to address several key financial issues.
The discussion covered important areas such as deposit mobilization, digital payments, cyber security, and the implementation of new credit products and schemes. A notable concern highlighted was that deposits have been growing at a rate 300-400 basis points lower than credit growth in recent months. This discrepancy has led to an asset-liability mismatch within banks.
To address these issues, Sitharaman advised PSBs to initiate special campaigns to boost deposit collection. She stressed the importance of enhancing customer service, particularly in rural and semi-urban areas. Additionally, she urged banks to increase credit flow to eligible beneficiaries under government schemes such as PM Surya Ghar Muft Bijli Yojana and PM Vishwakarma Yojana.
The Finance Minister also emphasized the need for a unified effort among banks, the government, regulators, and security agencies to combat fraud and cyber security threats. She instructed banks to implement recent Budget measures, including a new credit assessment model for MSMEs based on digital footprints and cash flows.
This meeting marks a significant step towards addressing the challenges faced by PSBs and ensuring they contribute effectively to the country’s financial stability and inclusion.
'Nirmala Sitharaman Tables Banking Laws Amendment Bill 2024: Key Changes and Impacts
Banking Laws Amendment Bill 2024: Gov Proposes Increase in Nominee Limits and More
