Pune. Union Finance Minister Nirmala Sitharaman said on Thursday that the banking sector will have to play an important role in furthering the agenda of making India a developed nation or ‘Vishwasit Bharat’ by the year 2047. Sitharaman said at a program organized here on the 90th foundation day of Bank of Maharashtra, “Banks will have to play an important role in advancing the agenda set by the Prime Minister and with your role we will accelerate the achievement of this dream.” She said that banks will have to help in giving a strong impetus to the infrastructure sector, providing finance according to the need to the MSME sector, bringing the unbanked population into the banking fold and increasing insurance access.
Sitharaman said that technology is rapidly changing the banking landscape as it provides a secure and easy-to-operate digital banking experience to all customers. However, she also asked banks to focus on technology security.
The Finance Minister said, “You (banks) cannot have a digital system which can be hacked anywhere and the entire system and the trust based on it is at risk. For this you need a strong system. You have to ensure every time that adequate security arrangements are in place and what kind of steps have to be taken in any emergency situation.” The Finance Minister also highlighted the growing popularity of the integrated payment system UPI in promoting digital payments. He said that 45 percent of all instant digital payments globally take place in India.
He said that UPI payment system has been started in seven countries at present. These include Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka and United Arab Emirates (UAE). Citing the Reserve Bank’s financial stability report, he said that this paints a picture of the strength of the Indian economy and financial system.
The gross non-performing asset (NPA) ratio of the banking sector (private and public) has come down to a multi-year low of 2.8 percent and the NNPA ratio to 0.6 percent. Speaking on the occasion, Financial Services Secretary M Nagaraju said that banks should follow the approach of increasing revenue along with earning profit. He also asked banks to focus on improving customer satisfaction levels and introducing customer-friendly systems and processes. Bank of Maharashtra Managing Director Nidhu Saxena said that the bank is planning to add 1,000 branches to its network in the next five years.