Sitharaman Urges Banks To Prioritise Core Banking In Meeting With RBI Central Board
Date
8/10/2024 2:17:12 PM
(MENAFN- KNN India)
New Delhi, Aug 10 (KNN)
In a significant meeting with the Reserve bank of India's (RBI) Central Board of Directors on Saturday, Union Finance Minister Nirmala Sitharaman emphasised the critical importance of banks concentrating on their core banking activities.
The gathering, which took place at the RBI office in New Delhi, included key figures such as Union Minister of State for Finance Pankaj Chaudhary and RBI Governor Shaktikanta Das, along with other board members.
Minister Sitharaman reiterated a message that has been consistently communicated by both the government and the RBI, stating, "Banks should focus on core banking, including deposit collection and lending money."
This statement underscores the administration's stance on the fundamental role of banking institutions in the economy.
During the session, Governor Das addressed the autonomy of banks in determining interest rates.
He clarified that both deposit and lending rates are deregulated, allowing financial institutions to set their own rates based on market conditions and internal policies.
The timing of this meeting is noteworthy, occurring shortly after the presentation of the Union Budget for 2024-25 and the Lok Sabha's approval of the finance bill with government amendments.
This context suggests that the discussions may have broader implications for the financial sector's alignment with national economic strategies.
As the banking sector continues to evolve, the government's emphasis on core banking activities signals a potential recalibration of priorities within the industry.
The outcome of this high-level meeting may influence future policy decisions and banking practices across India.
(KNN Bureau)
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