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Public sector banks are going to launch new products in the next 3-4 months to push lending to all sectors including MSMEs.
Financial Services Secretary M Nagaraju announced that public sector banks will introduce new products in the coming months.
Public sector banks will unveil new products in the next few months to improve credit growth, Financial Services Secretary M Nagaraju said on Tuesday.
“We are actually committed to growth, and we want to give more credit because we have a large youth population,” he said while addressing the Financial Inclusion and Fintech Summit organized by CII here.
He said that public sector banks are going to launch new products in the next 3-4 months to extend credit to all sectors including MSMEs.
Over the past few years, the government has already taken several steps to improve credit availability for small borrowers, including announcing a new credit model for lending to such borrowers in the budget. Has no previous financial record.
Although the banking sector is strong, Nagaraju said growing digital frauds are posing a threat to the stability of the financial sector, and banks should focus on addressing this challenge.
Both digital innovations and financial literacy will help reduce this, he added.
Speaking on the occasion, Nagaraju also said that the Banking Amendment Bill tabled in Parliament during the monsoon session is likely to be tabled in the ongoing winter session.
The amendments aim to bring about changes in banking regulations, including a new definition of substantial interest for directors, an increase in the number of nominees for bank deposits and changes in compliance reporting dates.
Speaking on Fintech, he said that India is the third largest country in terms of startups, and there are around 13,000 such entities operating in the space.
The government is committed to the goal of financial inclusion and is working with the fintech industry to achieve greater inclusion, especially in underserved areas.
“The government is making great efforts to promote ease of doing business and reduce the compliance burden for Fintech companies,” he noted.
He emphasized on the government’s continued efforts to provide an enabling ecosystem for the fintech industry, including strong digital infrastructure and schemes like the PM Protection Insurance Yojana and Atal Pension Yojana, which are huge for the industry. Can take chances.
“A fine balance needs to be struck between promoting innovation and protecting the integrity of the regulatory system,” he warned.
Speaking on the occasion, NABARD Chairman Shaji KV emphasized the need to bring about technological change in a more democratic manner, particularly in the rural economy.
Shaji added that while large banks have benefited from greater digitization, cooperative banks and regional rural banks may not have reaped the benefits of digitization to the same extent.
He said that given that these banks do not have enough funds to invest in new technologies, it is important that all stakeholders do their best to involve RRBs and cooperative banks in new digital efforts. .
In this context, he recommended that fintech companies can take advantage of the recently announced government schemes to improve the growth equity in the country.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed. PTI)