Banks catalysts for economic revival, should focus on welfare: Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Wednesday said that banks would be the catalysts for economic revival. "At this stage, the catalysts for economic revival, the catalysts who have the pulse of every one of their customers, are banks," Sitharaman said while speaking at an event after launching PSB Alliance-Doorstep Banking Services. She also said that other than focussing on core business, the baks should also focus on welfare.

"You don't forget your core activity, which is lending and making money out of it and that is a legitimate activity. You will do that and also being in the public sector, do some things which are welfare related as announced by the government," she said.

"It is your duty to know about the schemes that the government passes to customers through you. I would want to be sure that your staff at every level has at least some idea of what are the government schemes being passed through you to citizens," Sitharaman said.

This awareness is going to make banks more accessible to customers who want to avail those schemes, she added.

She also said that banks must use digital technology to fix gaps to ensure a speedy revival. Sitharaman said that these must reach out to those areas where banking has not reached yet. Even in the most developed states, there are gaps in formal banking, Sitharaman added.

Meanwhile, Sitharaman had recently said that India's commitment to reform is being taken seriously by foreign investors, which is evident from the good inflow of the Foreign Direct investment (FDI) even during the time of COVID-19. Between April-July, FDI into India stood at $20 billion.

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