Focus on deposits, strengthen cybersecurity: FM to banks

The much-awaited meeting between Union Finance Minister Nirmala Sitharaman and heads of public sector banks (PSBs) on Monday revolved around mobilising deposits through "special drives" and stronger bonding with bank customers.

- HARSH KUMAR

The meeting, to review the performance of banks, came against the backdrop of recent concerns that deposits have been growing slower than credit.

While acknowledging the improved asset quality of PSBS, the FM advised banks to optimise the scope of resolution and recovery offered by the National Company Law Tribunal (NCLT) and the National Asset Reconstruction Company Ltd (NARCL).

The effort should be on ramping up deposits, she's learnt to have told the banks.

The FM also met top officials of regional rural banks in a separate meeting, where banks were asked to expedite one state-one RRB initiative. Strengthening of banks' IT systems from a cybersecurity perspective was discussed prominently at the first meeting with PSBs. The focus was on ensuring that banks' systems are not breached or compromised.

"The finance minister urged banks to ensure their employees actively connect with customers, particularly in rural and semiurban areas. She also encouraged PSBs to explore collaborations to leverage each other's strengths by sharing best practices in emerging areas and equipping themselves to keep pace with changes in the banking sector," according to a finance ministry press statement.