Nirmala Sitharaman asks banks to be more customer-friendly

Mumbai, February 21

Union Finance Minister Nirmala Sitharaman on Monday said banks need to focus more on being customer-friendly so that the process of availing credit becomes more hassle-free for borrowers.

However, the minister made it clear that banks do not have to be lenient on credit underwriting standards by taking any adverse risks on a proposal.

Don’t take adverse risks

Banks will have to be a lot more customer-friendly. Not to the extent of taking adverse risks which you don’t need to take, but you need to be friendly with customers. — Nirmala Sitharaman, Union Minister for Finance and Corporate affairs

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At a meeting between industry representatives and the finance minister, a startup founder in the baking business suggested for credit to be available hassle-free, to which largest lender SBI’s Chairman Dinesh Kumar Khara said a startup’s worries are more on the equity side and assured full support in lending if sufficient equity is on the table.

Later, he made a mention of the government’s Credit Guarantee Fund Trust for MSMEs. He said in the next two months, the bank will go fully digital for lending. Earlier, the head of SBI hinted at seeking some relaxations on the stressed asset recognition in rural areas from the finance minister, saying the mofussil areas are yet to come out of the impact of the pandemic. —