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. Read More: Woman gets Rs 1,500 an hour to watch porn videos for research
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. Read More: Post Office Scheme: Invest Rs 417 everyday to become a millionaire, here’s how
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 programs.
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.