Mumbai: Finance Minister Nirmala Sitharaman today exhorted all the banks to sign up to the Account Aggregator model which would facilitate seamless flow of credit for small borrowers and promote digital lending.
Underscoring the importance of information sharing and collaboration, she directed that pilots for the Account Aggregator model and cash flow-based lending may be replicated in different regions around the country including in the North Eastern Region, on the lines of the initiative by two banks in Varanasi district.
Sitharaman was chairing a post-budget meeting with heads of Banks, Non-Banking Financial Institutions (NBFCs) and Financial Institutions here today. The meeting was attended by Union Minister of State for Finance Dr Bhagwat Kishanrao Karad; Sanjay Malhotra, Secretary, Department of Financial Services; Ajay Seth, Secretary, Department of Economic Affairs and Dr V. Anantha Nageswaran, Chief Economic Adviser. The heads of all Public Sector banks, select Private Sector Banks, NBFCs and Financial Institutions were also present in the meeting.
It was emphasised during the meeting that digital banking, digital payments and fintech innovations were an opportunity for banks to find new ways to reduce the cost of intermediation and provide cost-effective services and that the benefits of digital banking should reach every nook and corner of the country in a consumer-friendly manner. It was further stressed that the banking industry should target to open accounts of unbanked adults under Jan Dhan Yojana and ensure Insurance/Pension coverage to all eligible adults.
The participants also highlighted that banks were in a strong position to support future growth, enabling the country’s economy for take-off with a record profit of Rs. 1.22 lakh crore in FY 2020-21 and Rs. 0.79 lakh crore in HY 2021-22, declining Gross NPA figures to 6.90% (as of Septmber 2021) from an all-time high of 11.20% (as of March 2018) and sufficient buffers with an all-time high CRAR of 16.5% (as of September 2021) against the regulatory mandate of 11.5%.
– global bihari bureau
