Nirmala Sitharaman pointed out on Sunday the need for more Indian banks that can match the scale of lending achieved by SBI. State Bank of India is the largest bank in India in terms of its lending. According to the FM, India needs 4-5 more banks like SBI to meet the changing needs of the economy.
“The way in which the economy is shifting to a different plane altogether, the way in which the industry is expanding, so many new challenges keep arising. to address these challenges we need not just more, but bigger banks.” Sitharaman said at the 74th general meeting of the Indian Bank’s Association.
According to the FM’s speech at the event, there are many parts of the country where there is little to no access to financial services. She asked the IBA to improve banking access in every district through optimum utilization of digital technology. “Almost two third of nearly 750,000 panchayats have optical fiber. The IBA should consider this and conduct an exercise and decide where banks should have physical presence and where we are able to serve customers without it. IBA should take the initiative and complement government’s efforts for financial inclusion,” she said.
Nirmala Sitharaman’s stand on Unified Payment Interface:
“In the payment world today, Indian UPI has made a very big impression. A RuPay card which was not as glamorous as foreign cards is acceptable in many different parts of the world. This is symbolic of India’s futuristic digital payment intentions.” Nirmala Sitharaman added.
A UPI(Unified Payment Interface) is a real time digital payment system which RBI regulates. The system allows instant transfer of funds between two bank accounts via mobile. National Payments Corporation of India developed UPI and it supports majority of payments/transfers.
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