Finance Minister Nirmala Sitharaman urged state-owned banks to introduce innovative and appealing deposit schemes during a meeting with the Managing Directors and Chief Executive Officers of public sector banks (PSBs). The goal is to boost deposit mobilization, thereby enabling banks to extend more credit. The minister emphasized the importance of this initiative to address the current imbalance between credit and deposit growth.
Despite some banks raising interest rates, the gap between credit and deposit growth persists at 3-4%. In response to this, some public sector banks, including State Bank of India and Bank of Baroda, have already increased deposit rates to attract funds.
FM acknowledged performance of PSBs
While acknowledging the improved performance of public sector banks, Sitharaman cautioned against bank frauds, highlighting their potential threat to individual customers and financial institutions. She stressed the need for strict administrative action against officials involved in fraud and wilful defaults.
On the financial performance front, PSU banks reported a net profit of approximately Rs 68,500 crore in the first six months of the current financial year. The gross non-performing assets (GNPA) ratio for scheduled commercial banks fell to a decade-low of 3.9% in March 2023 and further to 3.2% in September.
Instructions to Banks
Sitharaman instructed banks to focus on preventing large corporate frauds and wilful defaults. She recommended adopting advanced fraud prevention and detection mechanisms and educating customers about safe banking practices. Regarding wilful defaults, she emphasized the importance of responsible lending practices, enhanced due diligence, regular monitoring of large loan accounts, and swift legal action.
National Asset Reconstruction Company Ltd
The minister also addressed the National Asset Reconstruction Company Ltd’s progress in acquiring stressed accounts, urging improvement and regular meetings between NARCL and banks. She directed banks to undertake consumer education measures to protect against fraud calls, identify fraud accounts promptly, and intensify recovery efforts.
Cybersecurity
Sitharaman reviewed PSBs’ preparedness for cybersecurity risks, stressing the importance of complete customer data privacy. She called for proactive cybersecurity measures, stringent security protocols, and adaptation to the evolving digital landscape. Collaboration and mutual learning among PSBs, coordination with security agencies, regulatory bodies, and technology experts were emphasized to create a resilient financial ecosystem against cybersecurity threats.
The meeting, attended by Minister of State for Finance Bhagwat Kishanrao Karad, Vivek Joshi (Secretary, the Department of Financial Services), and other senior officials, covered a comprehensive range of topics related to the financial sector.
Very useful updates. Need site name to get latest chances on Financial Inclusion by GOI
No mention about the need for early settlement of the Pension Updation issue of old PSB retirees on the lines amendments of RBI/ NABARD bank retirees agreed by MOF/GOI recently
No mention made regarding the need for immediate settlement of long pending demand of Periodical pension Updation raised by old retirees similar on the lines agreed by MOF for RBI / Nabard retirees
Good points…just some ad ons
Ethical banking practices should be discussed
Tightening of KYC norms in view of increasing frauds
Staff retention policies should be reviewed
Innovative credit recovery mechanisms
Education to banks staffs for better customer experience
The undue pressure on the employees especially, the lady staff members is not at all appreciable. The lady staff may be permitted to leave the bank maximum before 6.00 pm. The customers have given lot of options for banking at any time, by using ATM, UPI, and internet transactions. As such, there is no need for the lady staff to sit in the Bank after 6.00 pm. A healthy family is a good source of sincere and able staff.
Why FM is reluctant for updation of pension of PSB’s which is a long pending issue
She said nothing or even a single word about 5days banking
Pension updation and a reasonable Health insurance premium for retirees should have been given due importance by the finance minister as we the pensioners are getting less amount month by month due to various tax liabilities
The MOF and IBA are always not in favour of pension updation of bank retirees. They are always misleed by IBA whereas central govt. rules are also applicable in case of bank pensioners also. The same are paid to RBI, Nabard pensioners then why the IBA andMOF denying the same to others
The Govt. Is very selective. They are working on devide and rule. When the MOF is very kind to give updation to RBI and Nabard, how they can deny the same benefit to other PSB pensioners. The pension rules must be same to all. MOF must think on this.
Pension increase for what. Already all the retirees have huge monthly surplus with minimum bare needs on account of 70 percent of wards employed overseas. After all our contributions in our personal was negative with adverse productivity. So pl give break tp oension hike for amother 3 years
Respected FM Mrs Sitharaman is not interested to think about the poor Bank Retirees. Whether she is thinking about their dying in starvation. The aged, physically weak, mentally unstable people who have sacrificed their young age for the bank, are burden to the nation?
She belongs to our “Mother Caste”, she should be pitiful to the pensioners genuine demand.
I am now 71, retired in April,2013 in superannuation.A decade is passed.How long I shall live in this planet! Our pensioners’ community is leading miserable life.
I pray , may God give Sitharaman ji a reasonable thinking on 7.5 lakhs bank retirees.
Mr P Srinivasulu is not known the facts. He may be well off and your wards may be earning lot of money. So many pensioners are really starving. Their 2 or 3 months pension is going towards Health insurance. So many wards are not taking care of their parents. In view of the above plz know the complete facts before commenting .
I request hon’ble FM to take special interest about long pending pension updation to settle as early as possible.
Madam didn’t talk on INTERNAL FRAUDS committed by Banks on its own Employees. There is no proper solution/guidance to get the same rectified but simply mentioned…..For example,RBI says that its EMPLOYER EMPLOYEE RELATIONSHIP MATTER and escape from the scene, keeping the victim in vacuum.
For simple things, Employees cannot approach COURTS which is the most tough course particularly for the RETIRED EMPLOYEE.
FM Madam,just a minute..think twice..act once…and restore JUSTICE since I am also one among the victims.
I am drawing pension of Rs.15684 & Mr P Srinivasulu is saying we have money.My son is not abroad and is working in private company here and doesn’t get salary in crores which Mr.P.S is saying.I have not covered myself for health because I cannot afford. Pension updation is a must and need of time .