For wider financial inclusion, banks should embrace digitisation: FM

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Finance Minister Nirmala Sitharaman said that in order to ensure the last-mile delivery of government schemes, banks must totally undergo digitisation. Sitharaman said that banks should embrace digitisation so that poor people are able to get the benefits of schemes by the government. For a wider reach, the financial institutions must adopt financial inclusion. Sitharaman was addressing the centenary celebrations of the city-based Tamilnad Mercantile Bank. She pointed out that during the Covid crisis the government was able to provide financial disbursements to the needy with help of digitisation through banking correspondents. She said that Prime Minister Narendra Modi launched Jandhan Yojana in 2014 to ensure everyone has a bank account and be able to transact through a RuPay card.

During the Covid crisis, the government was able to distribute Rs 15,00 in three installments to the poor into their bank accounts. Through digitisation significant developments are happening at a fast pace.

Sitharaman said, “There is no necessity to open a branch in a place which does not have a bank. Today, to reach a bank account of the people who live there, all kinds of technologies are available…Even sitting from Tuticorin one can serve the banking requirements of people living in small villages through technology.”

She said that all banks must adopt complete technology-related solutions to be future-ready. “Auto-populating data (of a consumer) has been very useful (today), it may be in income tax or GST related,” Sitharaman said. She said that TMB should consider using digitisation and utilise it for auto-populating data.

She said, “There are a lot of prospects for banking…I think it is important for digitisation to be completely brought in. Digitisation cannot be avoided for your own good and for the sake of customers.”