FM Nirmala Sitharaman asks PSBs to make 'concerted' efforts for special deposit drives

Underscoring the need for robust cyber-risk mitigation strategies, the finance minister urged banks to periodically review every aspect of their IT systems from a cybersecurity standpoint.

She said ensuring the security of banking systems remains a top priority to prevent any breaches or compromises.

FM Sitharaman, in a bid to sustainably fund the growing credit demand, also called upon the public sector banks to carry out special drives to garner deposits.

The FM also directed lenders to implement a new credit assessment model for Micro, Small, and Medium Enterprises (MSMEs).

Advising the lenders to prioritise customer engagement, Sitharaman directed the bank employees to actively reach out and connect with customers, especially in underserved rural and semi-urban areas.

The FM also stated that the public sector banks (PSBs) should share best practices in emerging areas and keep pace with the ongoing changes in the sector.

A new credit assessment model for MSMEs, focusing on digital footprints and cash flows, is set to be rolled out swiftly to support small businesses, she said.

Addressing concerns over non-performing assets, Sitharaman emphasised optimising the resolution mechanisms under the National Asset Reconstruction Company Ltd (NARCL) and the National Company Law Tribunal (NCLT), according to reports.