Finance Minister Nirmala Sitharaman has stated that the country requires at least four banks the size of the State Bank of India (SBI) to satisfy the economy’s rapidly changing demands, particularly as digitization grows.
Ms. Sitharaman, speaking at the Indian Banks’ Association’s 74th annual general meeting on Sunday, said that in the post-Coronavirus world, Indian banks have adapted to the digitized system faster than many nations.
Read also: Petrol price cut to make immediate economic impact: TN Finance Minister
Given the changing realities of the economy and industry, we need to build up banking to suit changing needs.” She emphasized the necessity of fully embracing digital infrastructure, pointing out that Indian banks would require new technology, which will have to be tailored to the country’s specific needs.
Because, despite the flurry of economic activity, several rural areas still lack banking facilities, efforts should be made to ensure the physical presence of bank branches in such places and ensure that financial transactions are conducted through a digitized framework wherever there are no physical bank branches.
During her 30-minute speech, the finance minister argued that banks should use digital mapping to determine where physical presence is required and where clients may be handled online. She believes that now that over two-thirds of panchayats are connected to the optic fiber network, banks should reach out to them and assure their financial inclusion via digitization.
Read also: Once in a generation reforms is a must, says TN Finance Minister
Ms. Sitharaman added, praising the organization for ensuring that bank mergers were conducted smoothly even amid the raging Coronavirus outbreak. You were influential in moving the government’s plan forward and ensuring that it was a successful exercise. And it happened without causing customers any disruption, friction, or inconvenience.
