Finance Minister Sitharaman Pushes PSBs to Drive Financial Inclusion and Green Lending

Finance Minister Nirmala Sitharaman on Friday called on public sector banks to enhance corporate lending in productive sectors while maintaining strong underwriting and risk management standards. The finance minister's directives come shortly after the Reserve Bank of India significantly reduced the repo rate and the cash reserve ratio, injecting substantial liquidity into the system.

Chairing a high-level meeting, Sitharaman urged state-owned banks to bolster deposit mobilization and credit growth. Special focus was placed on expanding branch networks in semi-urban and rural areas, the energy sector, particularly renewable options, and augmenting India's capabilities in international financial services through GIFT City initiatives.

The minister also spotlighted the need for improved customer service, encouraging banks to offer digital and multilingual services, while participating actively in the Financial Inclusion saturation campaign. She emphasized scaling up efforts under various government schemes such as PM Jan Dhan Yojana and the New Credit Assessment Model for MSMEs.

(With inputs from agencies.)