The minister said, “Even today many panchayats do not have a bank branch, I am not saying that you need a physical presence everywhere, digitization has saved a lot of cost without compromising on the service provided by the banks. ”
“Bank and” IBA Can decide among themselves where you need to be physically present and where digital services can be expanded. A good rational approach will help in the financial inclusion agenda of the government. ”
Giving lenders the option to decide what space is required banking presence Through a brick and mortar presence and where a step-down presence would help, Sitharaman said the IBA should digitize and map the banking presence in each district and identify gaps. The minister said that he is not against digitization and efforts.
Speaking on the setting up of the National Asset Reconstruction Company, Sitharaman said that the books of banks are much clearer now and this will help the government as the recapitalization requirements are reduced.
“The burden on the government will be less as your books will be clean,” the minister said.
The minister also praised the banks that joined the account aggregator framework, and said that financial inclusion cannot happen if credit does not reach far and wide.
“The future of credit outreach can be through the system throughout the year and there doesn’t need to be a separate credit outreach program,” she said. “If the account aggregator model is used immediately, credit will be available to even the smaller customers who reach out to you, without any worries.”