FM Nirmala Sitharaman`s BIG Step: Asks banks to do THIS on priority

Banks need to pay more attention to their customers` facilities in order to make the loan procedure easier for borrowers, says FM Nirmala Sitharaman.

New Delhi: Finance Minister Nirmala Sitharaman stated on Monday that banks need to focus more on being customer-friendly so that the process of obtaining loans is easier for borrowers.

The minister made it clear, however, that banks are not required to be flexible with credit underwriting requirements by assuming any negative risks on a proposal.

According to the Finance Minister, banks need to pay more attention to their customers' facilities in order to make the loan procedure easier for borrowers.

During the day-long meeting, the Finance Minister assessed the lenders' performance as well as a variety of topics including loan growth, asset quality, capital needs, and financial inclusion under the government's outreach programmes.

The conference takes place at a time when the Reserve Bank of India (RBI) has increased the repo rate — the key interest rate at which it loans money to commercial banks — by 90 basis points since May 4, as central banks struggle to combat persistently high inflation without stifling economic growth.

'Banks need to become more and more client friendly,' stated Sitharaman. However, it should not go to the point of incurring unfavourable risks. You are not required to take it. However, you must consider the ease of your clients and become more seamless.’

Dinesh Khara, SBI Chairman commented on this, saying that the bank's digitization effort is speeding up for the benefit of its clients. Customers will be relieved of their banking troubles as a result of this.