banking innovation – Bharat Pulse News

Union Finance Minister Nirmala Sitharaman recently chaired a comprehensive review meeting of India’s public sector banks (PSBs), directing them to intensify their focus on financial inclusion, digital innovation, and stronger credit practices. The session evaluated each bank’s performance and explored how the sector can evolve to meet national economic goals while serving the underbanked. Expanding Financial Access in Underserved Regions Sitharaman emphasized the critical role that PSBs play in driving financial inclusion. She urged banks to reach deeper into rural, semi-urban, and economically weaker sections with tailored services such as savings accounts, affordable credit, micro-insurance, and pension schemes. She reiterated that empowering women and small entrepreneurs through accessible banking is key to inclusive growth. Pushing for Digital-First Innovation Recognizing the transformative power of technology in banking, the Finance Minister encouraged PSU banks to embrace innovations in areas like digital payments, AI-driven customer service, blockchain solutions, and data analytics. She stressed that innovation should not be limited to customer-facing services, but also extend to backend operations for enhanced efficiency and cost control. Strengthening Credit Practices and Risk Management While championing growth, Sitharaman cautioned banks to maintain strong credit hygiene. She advised banks to continue reducing their non-performing assets (NPAs) and use advanced analytics for credit risk assessments. Lending practices, especially in sectors like MSMEs, infrastructure, and green finance, should be guided by both opportunity and prudence. Governance, Transparency, and Collaboration The Finance Minister also pointed to the need for robust governance mechanisms. She urged banks to strengthen board oversight, promote diversity in leadership, and enhance transparency in operations. Coordination with the Reserve Bank of India and government agencies, she said, must be seamless to ensure that banking reforms align with broader financial sector goals. Supporting India’s Growth Story Linking the banking sector’s role to national priorities, Sitharaman encouraged PSU banks to actively support key initiatives like the PM Gati Shakti plan, PLI schemes, and the renewable energy push. Infrastructure lending, credit to manufacturing, and sustainable projects were highlighted as areas requiring focused financial support.

FM Sitharaman Reviews PSU Banks, Stresses Inclusion & Innovation

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