Give personal touch to retail banking: FM
NEWDELHI: Finance minister Nirmala Sitharaman on Wednesday pulled up public sector banks (PSBs) for losing customer connect at the branch level, which is affecting credit flows to retail consumers and hampering effective delivery of the government’s schemes at the ground level.
The finance minister said that besides the use of technology for ease of the customer, PSBs should also find ways for giving personal touch to retail banking.
She told chairman and managing directors of state-run banks to hold periodic meetings with their field staff in order to motivate them and resolve practical issues faced by them in maintaining consumer connect at the branch level. “How we can be friendlier at the branch level?,” she said while speaking at the launch of ‘EASE 3.0, the Public Sector Bank Reforms Agenda 2020-21’ for smart, tech-enabled banking.
She said that every branch, particularly in a hinterland, needs at least one person who knows the local language. “AI (artificial intelligence) is fine, but customers also want little touch of you,” she said.
Sitharaman expressed concern over bankers’ over-reliance on credit score of potential loanseekers. “Banks (PSBs) are doing core banking rather than development financing... credit rating agencies are not advisory but only indicators... so don’t blindly follow the rating agency,” she said.
She said that even if a bank declines a loan to a customer, it should not be done in a mechani cal manner. “The reasons should be explained... Letter and spirit of branch level banking is (to have) direct connect with the customer,” she said.
The finance minister said that PSBs are different than private banks as they are responsible for delivering several developmental schemes of the government. “Many branch level officials don’t have information about these schemes,” Sitharaman said.
She asked bank chairman and managing directors to come up with suggestions to improve banking at branch levels.
On providing relief to micro, small and medium enterprises, she said PSBs have been asked to restructure all stressed loans to small enterprises by March 15.
The finance minister said the government is “closely monitoring” the impact of the coronavirus outbreak on the Indian economy. She also said that the telecom department is taking a call on relief to telcos facing trouble in paying ₹1.47 lakh crore adjusted gross revenue dues to the government. “Meetings have taken place. DoT is taking a call”.