Staff Reporter / MUMBAI
Union Minister of Finance Nirmala Sitharaman today chaired a post-budget meeting with heads of Banks, Non-Banking Financial Institutions, and Financial Institutions in Mumbai today. The meeting deliberated on the various budget announcements in the context of PM Gati Shakti, Defence, Telecom, Manufacturing and exports, Emergency Credit Line Guarantee Scheme (ECLGS), and tax concessions to new manufacturing units and start-ups. The meeting also discussed various schemes such as subordinated debt to MSMEs, Aatma Nirbhar Bharat Schemes, and credit outreach programme which provided immediate relief to the borrowers and the banks, from the impact of the COVID-19 pandemic.
Underscoring the importance of information sharing and collaboration, the Finance Minister exhorted all the banks to sign up to the Account Aggregator model which would facilitate seamless flow of credit for small borrowers and promote digital lending. The Minister directed that pilots for the Account Aggregator model and cash flow-based lending may be replicated in different regions around the country.
During the meeting, it was emphasized that digital banking, digital payments, and fintech innovations are an opportunity for banks to find new ways to reduce the cost of intermediation and provide cost-effective services and that the benefits of digital banking should reach every nook and corner of the country in a consumer-friendly manner. It was further stressed that the banking industry should target to open accounts of unbanked adults under Jan Dhan Yojana and ensure Insurance and Pension coverage to all eligible adults.
It was also highlighted in the meeting that with a record profit of 1.22 lakh crore rupees in 2020-21 and 0.79 lakh crore rupees in Half Year 2021-22 and declining Gross NPA, banks are in a strong position to support future growth, enabling the country’s economy for a take-off.